OPEC delivers on its promise of planned output cuts along with Russia this time. However, US shale output has been picking up and the crude production in the U.S reached 9.68 mbpd recently and is almost on par with the top two – Saudi Arabia & Russia. The year 2018 could see some pressure on crude prices despite OPEC cuts as the US keeps increasing its output, encouraged by the 100% jump in crude prices from the 2016 lows.

However for the short term, I expect crude prices to increase and WTI may hit 60-63 before a reversal driven by the increasing US output. The chart below of course is a 4 Hour chart and talks only about a very short term target (for Dec).