The oil price is rebounding on the unexpected outcome of the OPEC+ meeting. The real surprise was Saudi Arabia announcing a voluntary cut of 1 million barrels a day that will be put in place over the next two months. The market reaction showed enthusiasm for the decision, with oil jumping by 5% to bring the WTI price close to the $50 mark. Today’s early trading is showing resilience, with the price holding on to the levels achieved yesterday.
From a technical point of view, the price has reached a new 8-month-high, confirming the bullish trend of the last few weeks. Investors are still betting on further recoveries of the barrel once the coronavirus restrictions are reduced.