Oil is surging

Oil is rallying again this morning, with both Brent and West Texas Intermediate [WTI] roaring out of the gates at full speed.

At 10 a.m. GMT (5 a.m. EST) Brent was trading at $56.72 a barrel, up 3.24% from its previous value.

At the same time WTI crude was trading at $51.03, also gaining about 3% form last night.

This comes after two very positive days for oil prices on Friday and Monday.

Last Friday Brent grew by 8%, its biggest one-day gain since 2009.

Solid gains in early February are making up for the heavy losses in January, when Brent stumbled to six-year lows. Here's the chart:

Investing.com

There have also been suggestions that low prices could have an impact on future supply.

Today, BP announced it will cut $20 billion in capital spending (the money invested in new exploratory projects) as the British giant is feeling the pain of low oil prices. The company reported quarterly profits for $2.2 billion, better than the forecasted $1.5 billion but much less than the $2.8 billion in the third quarter of 2014.

At the same time, there are still plenty of reasons to be cautious about an end to the oil decline.

Business Insider Akin Oyedele yesterday highlighted four reasons for not being bullish about oil prices, forecasting further losses later in 2015.