WTI Crude Daily Update for December 1, 2016

WTI crude oil prices surged more than 9% higher on Wednesday following news that OPEC has agreed to its first cut in output in 8-years. OPEC had agreed to reduce production by around 4.5%, or about 1.2 million barrels per day.Saudi Arabia would contribute around 0.5 million barrels per day by reducing output to 10.06 million barrels a day, while Iran would freeze output at close to current levels of 3.797 million barrels per day.

Prices broke through resistance levels near 49.20, and are poised to test the October highs at 52.20.  Support is seen near former resistance at 49.20 and then the 10-day moving average at 47.07. Momentum is positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to higher prices.

Oil Fundamental Forecast

Oil Technical Analysis