WTI Crude Oil (current price: $47.86)
Oil had yet another wild swing on Wednesday as Saudi Arabia and Iran agreed on a broad production cut by the cartel in the coming months. The cut, which is the first official one since the financial crisis of 2008, might trigger a lasting rally in the commodity, although several analysts warned that even a significant cut won’t guarantee higher prices. WTI Crude surged past the $46.50 resistance one again in late trading after the decision, with further resistance ahead at $49.
Our assessment: Volatility is still expected to remain high in oil, despite yesterday’s bullish announcement, as the U.S. Dollar remains a risk for a long-term advance.
