Shares of the most troubled oil company Occidental Petroleum rallied 33% on Friday amid improving confidence over oil price fundamentals. It was a best-ever single-day gain for Occidental stock in its history that go back to 1972. The gains are attributed to oil price stabilization and prospects for strong oil demand recovery in the following months.

Occidental Petroleum shares rally in the past five consecutive days has pushed the stock to the highest level since early March.

OXY Occidental Petroleum Corporation daily Stock Chart

The US crude oil is trading slightly below the $40 mark while the international benchmark rose for the sixth week in a row and topped the $40 level on Friday.

Last week’s oil price rally was supported by OPEC producer’s announcements of extending the production cuts of 9.7 million barrels a day into July. The reports are indicating that Group leaders Saudi Arabia and Russia clinched an agreement with Iraq over production cuts extension.

The production cuts would decrease to 7.7M bbl/day in July based on the initial agreement between OPEC and its allies.

“We’re reasonably optimistic on the outlook for oil in the second half of the year,” Isabelle Mateos y Lago, co-head of the official institutions group at BlackRock Inc., said in an interview with Bloomberg television. “Demand is likely to recover far more quickly than supply.”

Occidental Petroleum has previously slashed its quarterly dividends along with announcements of massive cost cuts and lower production to deal with price volatility.

The oil company has also been working with financial institutions to raise debt. “Debt markets are “absolutely” open to Occidental despite being rated junk,” Peterson said, adding that stock selling is not under consideration. The company also expects to generate $2bn through asset sales.