The oil market is in a state of denial
Listening to market commentary today, you would think OPEC hadn't done anything at all. Analysts have been lightning quick to dismiss the plan but that's a mistake.
Ultimately, OPEC production might not decrease a huge amount but it will probably decrease and there's a risk it could cut supply further. Russia appears to be on board but most-important is that OPEC is cooperating. Sure, their grand plans might not come to fruition but it's abundantly clear that OPEC is not dead.
Technically, the case is bullish.
The jump yesterday broke out of the wedge/downtrend since June and it has been confirmed by the extension higher today.
There is some resistance around the August high of $48.75 but I don't see it as a huge hurdle. The momentum is clearly to the upside here and the shorts are facing a reality-check.