Oil prices were flat in overnight trading after OPEC and its allies agreed to a historic deal to cut production by a record 9.7 million barrels per day.
traded 10 cents higher at $31.58. In a volatile first few minutes of trading WTI jumped 8% before erasing those gains to turn negative.
"Unprecedented measures for unprecedented times," Ed Morse, Citi's global head of commodities, wrote in a note to clients on Sunday. Morse said the cut will have a significant impact in the second half of the year and help lift prices to the mid-$40s by year-end, but that there will be short-term pain while the market rebalances.
"This is at least a temporary relief for the energy industry and for the global economy," Rystad Energy's head of analysis Per Magnus Nysveen told CNBC in an email. "Even though the production cuts are smaller than what the market needed and only postpone the stock building constraints problem, the worst is for now avoided."
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