Global macro overview for 12/12/2016:
Crude oil prices grew strongly overnight, by 5.8%. Oil extended its rally when non-OPEC members decided to cut oil supply in order to join major oil producers from the cartel. Non-OPEC producers agreed to cut oil output by -558K bpd for six months starting on January 1st 2017. Moreover, this deal might get extended for another six-month period. The rhetoric expressed by Saudi Arabia Energy Minister Khalid Al-Falih is also bullish for the oil market, who indicated that his country could go beyond their commitment at last month's OPEC meeting (-10.058M bpd), they are willing to lower their output below the psychologically significant -10M bpd level depending on market conditions. In conclusion, a very good morning for crude oil bulls as finally the agreement between OPEC and non-OPEC countries has been made.
Let's now take a look at the Crude Oil technical picture at the 4H time frame. After the spike up to the level of 54.47 the market is in full control of the bullish camp. Moreover, the sequence of higher high and higher lows might suggest the market will be trending higher towards the level of $60.00.
