News that OPEC members have been complying with production cutbacks had been supporting the market all week. The current rally, however, is a sign that shorts are becoming nervous and may be forced to cover.

Longer-term traders may also be positioning themselves for a rally in anticipation of another round of production cuts by OPEC. These new cuts are expected to be announced at the next meeting on March 15, but traders are fairly confident something will be done as Russia, Iraq and Venezuela have already thrown their support behind another reduction.