For a long time now oil has been range bound at the US$60 per barrel level. OPEC has already announced cuts and has said that more cuts are on the way, however traders have remained sceptical. Growing US stockpiles and a slowing US economy have also prevented oil from rallying.
In my opinion things are set to change soon and here is a
story
which quotes a trader on Saudi Arabia's oil minister suggesting more production cuts from OPEC.
OPEC has been saying this for weeks now, but when the Saudis say it, the markets take it more seriously," said Tom Bentz, a broker at BNP Paribas Commodity Futures in New York. "Crude has been stuck in this range for a while, but today it's showing signs that it's trying to recover."