News by Simon Kazinsky on 04:33 December 01, 2016 EST
Oil has gained around 10% in less than 24 hours after the OPEC agreed on Wednesday to cut production for first time in eight years. Although the cut is of only a small fraction of its existing daily production it can't be ignored that the cartel has been able to agree action following the depressing value of oil for more than two years now. This can just be the beginning of subsequent agreements to better manage the price of their natural resource.
From a technical view oil cross from bearish to bullish months ago and the fact that it bounced from its supporting moving average on the daily gives further confidence to this bias.
We may see consolidation in the following days but I will see any dip as a potential opportunity to add to longs.