World oil prices have charged higher this week, breaking back above the psychological barrier of $50 a barrel for the first time since July.
U.S. crude futures were trading two percent higher at $50.50 early on Friday. As recently as last month some analysts were warning of a risk that prices would collapse to $20 a barrel.
What's going on? Here are three reasons for the bounce:
1. Geopolitical worries: investors are worried more violence in the region could impact production and transport.
2. Dovish Fed minutes: minutes of the most recent Federal Reserve meeting released Thursday showed the central bank is not in a rush to raise U.S. interest rates.
3. Falling U.S. production: the U.S. Energy Information Administration said U.S. crude oil production declined by 120,000 barrels per day in September compared with August.
Read more on the reasons why oil prices are creeping back up.