OPEC and Russia agreed to ease their oil output cut by 500k barrels per day starting January. That is, OPEC_ will cut production by only -7.2m bpd, or -7% of global demand, comparing to current cuts of -7.7m bpd. Additionally, the group will meet every month to review the output policies beyond January, with monthly increases in production not exceeding 500k bpd.
WTI crude oil broke out of near term range on the news and hit as high as 46.43 so far. Near term outlook will now remain bullish as long as 43.78 support holds. 50 psychological level is the next hurdle. Reaction from there would decide whether the rise from March’s spike low would develop into a sustainable long term up trend.
