Start the conversation
You must be logged in to post a comment.
Oil prices today (Monday, Dec. 5) continue to rise after the official OPEC agreement last week. WTI crude oil prices are up 15% since the agreement was announced.
Brent crude oil prices are currently up 1% on the day, trading at $55.01 a barrel, a new high for 2016. WTI crude oil prices today are up 0.5% to $51.93 a barrel and are nearing 2016's high of $53.58, a mark set in early June.
Here's a look at why oil prices are continuing to rise today, and whether the OPEC agreement can keep prices up over the long haul...
Why Oil Prices Today Continue to Rise
Investors are still optimistic after the OPEC agreement was announced last week.
The oil cartel's agreement to cut oil production was its first since 2008 and signaled it was still a viable player in the oil market. By cutting oil production, oil supply will better match demand and force prices to rise.
The chart to the right shows how the price of crude oil surged after the OPEC meeting on Nov. 30. Though prices have continued to climb since then, the chart shows how the OPEC agreement has already created a price floor for oil.
And as Money Morning Global Energy Strategist Dr. Kent Moors has explained, establishing a price floor above $50 a barrel was one of the primary goals of the agreement.
Don't Miss: Are you doing everything you can to grow your retirement "nest egg"? You can start today with our top 5 money-making investment reports - they're absolutely free...
As long as the agreement remains in place, the cartel should be able to keep crude oil prices above this threshold. But, as Moors says, "the OPEC deal means little if it cannot be sustained long enough to allow the market to rebalance."
And despite rising crude oil prices today, this agreement has a long way to go before it can be called a success...
Will the OPEC Agreement Work?
Here Are 10 “One-Click” Ways to Earn 10% or Better on Your Money Every Quarter
Appreciation is great, but it’s possible to get even more out of the shares you own. A lot more: you can easily beat inflation and collect regular income to spare. There are no complicated trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks – passive income redefined. Click here for the report…