Non OPEC meeting planned for December 9th
The Non OPEC country of Oman is said to agree to cut production if OPEC reaches a deal. There is also a planned meeting with non-OPEC producers on December 9th.
The headlines today are certainly supportive of oil. However, as Adam often reminds us, what they say and what they do, are two different things. The gains today at least help in the short term. A move to the $40 may be more off in the futures now. However, if the normal cheating takes place, the cycle can easily restart.
Of course it is difficult to gauge at this point. SO traders need to listen to the price action. The daily chart of the Jan, Crude oil contract shows that the price move higher today took the price back above the 200, 100 and 50 day MAs (at $47.20, $47.69 and $48.49 respectively). If the price stays above - and starts to crack the $50 threshold - there should be further upside potential ($52.74 is the recent highs). A move back below and the traders should turn the bias around.
