The price of oil has been trapped in the mid-$50s because of fear:
1) Fear that OPEC+ would break ranks and flood the global market with oil.
2) Fear of weaker oil demand thanks to a global recession, which now looks extremely unlikely.
3) The belief that the United States can ramp up oil production at will to meet global demand
Fear #1 was eliminated on December 6th: Now that the OPEC Cartel members and Russia have agreed to lower their output by another 500,000 barrels of oil per day through March, oil traders can check that box and we can focus on debunking the “Fear of Recession”. read more