Oil lost big time over the last few weeks and entered a bear market late last week. However, it is surging today as new hope of an OPEC output cut has come to light. Saudi Arabia, the leader of OPEC, says OPEC is willing to consider another round of output cuts as a measure to keep prices high. The last time OPEC agreed to a round of cuts, the market was pulled out of its deep bear market and more than doubled in price.
FINSUM: We used to be skeptical that OPEC could pull off a coordinated cut because of the competing interests of members. But the success it saw last time around means no one should doubt it.