Oil prices in the last few months were under the influence of the USD rates and events related with OPEC reaching an agreement on the reduction of crude oil extraction. The implementation of the agreement should begin in January 2017, so the market is awaiting to see whether it will be executed by all countries-exporters. Investors remain optimistic for a while and the prices continue increasing. In particular, yesterday the price of oil reached a 17-month high.
In the near future the prices may vary, depending on the implementation of the agreement on the reduction of oil extraction. In January the market will be awaiting information about the volume of oil production, and only toward the end of the month investors will be able to draw certain conclusions. It's not worth expecting significant price spikes until this moment – probably the rates will be in the frames of the current uptrend. The price can reach the level of 55-56 per barrel for the Light sweet/WTI.
The MACD/Stochastics oscillators show a signal to open short deals, but at the moment trading against the trend is not the best decision. It's better to open the deals to buy because there are not enough preconditions for a trend reversal and the prices have not reached the real maximum yet.
