Oil Prices Surged 10% In Just 3 Days

Oil Prices Surged 10% In Just 3 Days

Oil Prices surged 10% over just the past three trading days to above $45.50 per barrel on Monday. Just two weeks ago, oil had fallen below $40 per barrel.

No, the big oil rally isn't being driven by signs of accelerated growth in the sluggish global economy. In fact, the latest stream of economic indicators have been sluggish.

Instead of fundamentals, crude is being carried higher by vague hopes that OPEC, Russia and other major oil producers will agree to "freeze" production.

The latest freeze buzz is being driven by unscheduled September OPEC meeting in Algeria, and new comments from Saudi Arabia's energy boss.

But this is not the first time that hopes of a freeze has driven mini rallies in oil. 

In fact, the last attempt to freeze production in April failed spectacularly. Oil watchers warn that prices could be getting ahead of themselves.

Source: CNN Money

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