WTI Crude Oil (current price: $53.45)
The OPEC deal concerning a production cut was joined by several non-OPEC nations over the weekend, helping the crucial commodity on Monday. Oil hit a 17-month high in early trading, but it drifted lower in the second half of the day. WTI Crude finished the session with a gain of 2% despite being up by almost 6% in the morning. The fundamental picture remains mixed for oil, as demand is still weak and U.S. production will probably rise again thanks to the higher prices.
Our assessment: Oil is still close to its previous highs despite yesterday’s early surge. The long-term trend is still bullish, but the commodity might fall back into the previous trading range following the reversal in late trading yesterday.
