Last week, “a number of events fueled a two-sided trade including a tightening of U.S. supply and the announcements of U.S. sanctions against Venezuela. Weak manufacturing PMI data from China also weighed on prices as well as a dovish outlook by the U.S. Federal Reserve,” according to OilPrice.com.

The latest production cut came as a surprise to many oil analysts as initial estimates were slated at 1 million barrels per day and 650,000 barrels per day for OPEC. Russia, though a non-OPEC member, has emerged as a major player in the negotiations, particularly when discussions got tense between rivals Saudi Arabia and Iran.

USO needs to rally another 14.84% to reclaim its 200-day moving average.

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