Oil was the biggest gainer yesterday and this has been the commodity that has been the most volatile over the past 1 week. There has been increasing chatter from the different representatives of the OPEC members and the reports so far have been generally positive and the market is hopeful of production cuts being finalised within the next few days. These production cuts will be helpful to cut down the supply and boost oil prices beyond $50 and towards the mid 50s atleast. The market didn�t have much hope of a deal last week and that�s why we saw the prices drop.
But this week, we have has positive statements from Putin of Russia and we also have reports of good progress being made in the talks and so the market now realizes that a deal is imminent and that saw oil prices rush towards $49. This region will be key going forward and expect this region to act as resistance and hold prices atleast until the details of the deal emerge. If the members do agree on a cut, expect prices to move beyond $50 quite easily.
Capitalstars