There are growing number of investors who are prepared to bet that prices have troughed

If they're right, this could be very important because it could mark a turning point

in a vicious downturn that has shredded the budgets of producing countries,

upended central bank policies and stoked fears of a deflationary spiral.

What's the evidence that prices have hit the bottom?

Well, since hitting a twelve-year low, now at 27 dollars a barrel in January

Brent Crude Oil, the international benchmark, has rallied by more than a third to over 37 dollars a barrel.

At the same time, hedge funds and other speculators have established their biggest bet in history on a recovery in oil prices.

Why are investors optimistic?

One reason they're bullish is that Saudi Arabia, the world's largest exporter, has done enough to convince the market

that it is sufficiently concerned about the length and depth of the price rout to consider action.

So, it's been talking to other big producers, such as Russia, about a production freeze.

Equally, the U.S. shell industry that contributed so much to the glut in the oil market is finally showing signs of slowing down.

Now, steady oil prices are important because they've helped stem some of the broad based commodity selling

due to their linkage that comes through oil-dominated commodity indices and exchange traded funds.

So industrial metals, such as zinc, copper, and aluminium, are now at their highest level since the autumn.

This in turn has triggered a big rally and beaten down mining stocks.

Can commodities sustain their price recovery?

Well, that's the big question that everyone's asking.

However, one thing is clear:

It would be difficult for prices to rise significantly for here for a number of reasons.

Companies will look to hedge their production,

that means selling future production forward in the market,

that would act as a cap on prices.

But, more widely, what the market really needs to see is a recovery in demand

eating to the stocks and oversupply in the market.

Ultimately, that means growth in China will need to pick up,

and it's not clear yet if that's going to happen.