The Oil price continued to push higher today reaching its highest level in over a year with some predicting that the OPEC deal reached yesterday was a game changer and further gains are expected.
Oil has now jumped over 12 percent in the last 2 days to around $54 in today’s trading.
Sam Wahab, director of oil and gas research at Cantor Fitzgerald Europe, noted that yesterday’s agreement to freeze production may see oil remain above $50 for some time.
He also predicts that if a deal is also reached by non Opec members then this will be another blessing for oil,
“In 2017 will likely see prices around the $55-$60 a barrel mark, and we may yet see further jumps in prices as soon as next week if the non Opec members also agree a production cut at their meeting on Friday 9 December.” he said
Some however warn investors not to get too excited over the price rise and that the price of oil could reverse if a number of factors come into play,
“I would not get too excited by the Opec cut. Compliance will be a problem, and the Russians will pump more gas instead. In the meantime, the long-run marginal cost of US shale continues to fall. I would not chase this oil price rally too hard.” noted Dominic Rossi, of Fidelity International.
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