After extreme price plunges amid the Covid-19 pandemic, oil rallied in the past week, recovering to $30 (R549) a barrel as the market rebalances. However, analysts warn that prices need to stay low for the next three months to avoid another rout.

The Covid-19 pandemic and resultant economic shutdowns to curb the spread of the virus hit the oil price particularly hard. Brent crude oil crashed below $20 a barrel and US oil prices last month turned negative on storage concern.

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