The recent OPEC+ pact not only stopped the fall in oil prices, but also gave it momentum for a rally. Oil quotes gained over 5% once the official news was released regarding cartel’s plans to reduce oil production by 1.2 million barrels per day. Oil has been in a downtrend lately. Moreover, most analysts expected a further decline in oil prices amid Donald Trump’s statements that the world did not need expensive oil.
However, during the recent summit, OPEC agreed to start lowering the volume of extracted oil from January 2019. The pact was signed for 6 months and could be extended after the expiration of this term. Currently, oil is supported by the OPEC’s decision. Nevertheless, it is not easy to predict the further oil movement as there are other factors influencing it. For example, Saudi Arabia could give in to the US pressure anytime and ramp up its oil output.
