Crude oil surged above $50 for the first time since June

West Texas Intermediate crude oil broke above $50 per barrel for the first time since June 24.

The uptick comes after a string of good news that may assist in rebalancing the supply-demand dynamics of the commodity.

Last week, the oil cartel OPEC preliminary agreed to a cap on production of oil and, on Wednesday, the Energy Information Association announced that inventories of oil in the US had unexpectedly decreased by 3 million barrels.

Over the past year and a half, oil has been dogged by an over-supply that has caused the price of a barrel to crash to its lowest level in over a decade. Based on recent news, it appears some of that over-supply may finally be working its way through the system.

NOW WATCH: Former Navy SEAL Jesse Ventura says ‘American Sniper’ Chris Kyle shouldn’t be remembered as a hero

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at