OPEC and some non-OPEC countries agreed on an extension on production cuts for a further nine months to March 2018 in an attempt to counter strong US shale production and high global inventories or to fight the supply glut, which has been pressuring crude oil prices in the past couple of years.

However, despite that solid step to balance the oil market, the initial market reaction pushed the prices even lower. The barrel of West Texas Intermediate dropped to its weekly low at $48.47 and settled at $48.62, losing 5.3% on the day.

“But for the market, it was clearly a case of ‘buy the rumour, sell the fact’, with oil prices falling sharply. The market is also likely to have jumped on the fact that no new non-OPEC countries will be joining the pact and there was no plan to continue curbs further into 2018. As with any OPEC agreement, markets appear to be a little sceptical that it will actually be successful.”

Current Crude Oil Price:
Currently, Crude Oil is trading at 48.62, down -0.57%, having posted a daily high at 48.95 and low at 48.21.

To know our latest recommendation or crude oil tips or crude oil signals along with stop loss and target price visit www.mmfsolutions.sg