Oil consolidates the OPEC deal-led rally

Oil prices on both sides of the Atlantic pauses its recent bullish momentum and extends the Asian side-trend into early Europe

Oil rescued by OPEC deal

Currently, both crude benchmarks trade modestly flat, with Brent around $ 49.20, while WTI trades just ahead of 47 mark. Oil prices take a breather as dust settles after a volatile session witnessed yesterday in wake of the OPEC Algerian meeting.

Oil jumped almost 5% after a three-day meeting concluded on a bullish note, with the OPEC announcing a historic output cut deal, which will be executed in November. Mohammed Bin Saleh Al-Sada, Qatar's energy minister and current president of OPEC said that the outline deal will limit output from OPEC countries to between 32.5 million and 33 million barrels a day.

Meanwhile, oil markets also cheered an unexpected draw in the US crude stockpiles, as reflected by the EIA weekly report. However, the main catalyst behind the massive rally in oil remained the OPEC’s announcement.

Focus shifts towards the US GDP figures for further impact on the USD-sensitive black gold, although the latest OPEC decision will continue to remain on investors’ minds.