Oil skyrockets 3 percent on OPEC cut & a stabilized stock market

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Oil skyrockets 3 percent on OPEC cut & a stabilized stock market

On Monday, the 7th of January, 2019, the oil prices had climbed over 3 percent, kindling a rebound from one and a half year lows of December, 2018, on support from the OPEC and non-OPEC production cut alongside a stable equity market.

Citing statistics, the Brent Crude surged 2.6 percent, reigning at $58.53 per barrel and the US crude gained 3.3 percent, remerging over $49.50 a barrel. However, while this report is being prepared, Jan.

7th, GMT. 22.00, the US Crude was being traded at $48.89 per barrel and the Brent crude had been at $57.64 a barrel. More crucially, the crude prices had gained over 10 percent since last Monday, Jan 1st and there had been a number of factors facilitating the gains including a softened US dollar (residing at 95.21, two months low) resulted by US government shutdown and dovish Fed comment, alongside the implementation of the OPEC production cut.

So far, the oil price seemed to be well-supported and multiple analysts had started to consider it as a safe haven commodity alongside gold, which was residing at $1288, closing in to breach $1300 region for the first time after a massive fall on June 15th, 2018 ($1310 to $1280), as a Petromatrix strategist, Olivier Jacob had been quoted saying that, the momentum was coming back into the market from very depressed price levels.