Countries outside OPEC on Saturday signed an agreement in which decided to reduce production by 558K barrels per day. Although there was no surprise the bulls got wave of opportunity and on Monday morning the price of Brent and Crude shot up.

Agreement OPEC – Russia

On Saturday OPEC signed an agreement on the reduction of oil production with countries outside OPEC (such as Russia). Despite the fact that it was a decision agreed upon beforehand and should not present any surprises for investors, oil prices rise on Monday, more than 4%. In late November, OPEC agreed to limit production by 1.2 million barrels a day starting in January 2017 year. After weekend agreement also countries outside OPEC will reduce production by a total of 558 thousand barrels per day. In addition to Russia, which will cut about 300 thousand barrels per day its production significantly will reduce also Mexico, Kazakhstan, Oman.

Crude Oil

On chart of Crude oil we see start of Monday’s trading with a bullish gap and quickly reaching the highest level since July 2015. Was broken important resistance at 51.50 and the price is heading now towards resistance levels: 56.00, 58.00. Starting from February 2016 on the chart of Crude we observe successive higher peaks and lows which confirm that at present there is a bullish trend.

Brent

The Brent chart also starts on Monday’s trading with a bullish gap. Was broken resistance at 55.00 and the price is currently moving to the resistance level at 59.00. As in the case of the Brent Crude oil reached its highest level in nearly 1.5 years.