Oil is heading for a third weekly gain on signs the market is slowly rebalancing as major producers cut supply and consumption recovers after a historic collapse in demand due to the coronavirus.

Futures in New York are up 12% this week after closing above $27 a barrel on Thursday for the first time in over a month. Saudi Arabia has slashed supply to the U.S., Europe and Asia as OPEC and its allies reduce daily output by almost 10 million barrels. The International Energy Agency said that the outlook is improving, while Goldman Sachs Group Inc. and BP Plc see gasoline use rising.