USOil surged to $54.09 highs, up from near $51.50 earlier in the day. The move comes as OPEC+ have apparently agreed to cut production by 1.2 mln bpd, 800k bbls from OPEC, and 400k bbls from Russia and non-OPEC producers. The Street had been looking at cuts of 1.0 to 1.4 mln bpd to balance the market, so this outcome should provide some medium support to oil prices. Monday it was 1.3 mln, agreed between Saudi and Russia, this was followed by 800,000 later in the week and complete deadlock within OPEC yesterday.
The collapse in Oil prices from early October may now have bottomed, however, the 20-day moving average remains key for many traders and investors. A strong floor has been established at $50.00 the rally to $54.00 today could be held in check by this popular indicator. Today’s close will be interesting.
Click here to access the HotForex Economic calendar
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
This Market Review is presented by HotForex Broker. Click here to open a HotForex Real Account.