Thin Volume in First Day of Post-Holiday Trade Sends Oil Near $54

U.S. crude oil futures jumped on Tuesday, prolonging its year-end rally amidst expectations of tighter market once the deal between OPEC and non-OPEC producers takes effect from Sunday.

Crude prices soared more than 1.7% to nearly $54 per barrel and are on track to attempt the year’s high of $54.51 high reached on December 12th. The strong surge came after remarks from the Energy Ministry of Venezuela stating that the country would cut 95,000 barrels-per-day of oil production since January 1st in fulfillment of a nearly 1.8 million bdp output-cut deal signed by the OPEC and non-OPEC oil producers.

The up move was magnified by low trading volume in the first post-Christmas trading session

Trade suggestion

Buy Stop at 53.90, Take profit at 54.50, Stop loss at 53.60

 

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