By: Mahmoud Gamal
Mubasher: Oil price hit its highest in 17 months on Monday after OPEC producers showed signs for their commitment towards the cut agreement to reduce the global supply glut.
By 03:40 GMT, Brent crude oil futures added 0.8% to $55.65 per barrel, gaining $0.44, while West Texas Intermediate (WTI) increased 0.9% or 49 cents to $53.44 per barrel.
On 30 November, OPEC agreed to cut its own production by 1.2 million barrels daily as of next January, while Russia and Non-OPEC producers agreed on reducing the production by half.
Under the agreement, Saudi Arabia, the largest oil exporter in the world, will cut its production to 486,000 barrels per day to reduce supply glut.
The upward trend of oil currently targets the level of $62 per barrel technical analyst, Badr Al Dorzy, told Mubasher.
He added that closing at the current level this week is important, as decreasing to the level of $51 will change its path from the upward to the downward.
Moreover, technical analyst, Bassem Al Enzy, told Mubasher that there are concerns among traders that the big changes in oil prices will not continue and that the market has risen more than the necessary.
Mega companies, such as Saudi Aramco and Qatar Petroleum, announced last week reducing its oil production and committing to the agreement.
Translated by: Sara Ghali
