Oil prices have rallied as OPEC and allies have agreed to extend current production cut of 1.2 million barrels per day by another 500,000 barrels per day to 1.7 million bpd for Q1 2020. While market is disappointed with smaller time frame of cuts and concern that some producers may not adhere to higher cuts, price rose as Saudi Minister said they may continue to exceed their target by 400,000 bpd so actual cut could be much more. Price was struggling to sustain above $58 but with the positive momentum we could see price breaking above $60. A final communique from OPEC is still awaited for more clarity on individual targets
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