FXStreet reports that in the opinion of strategists at ANZ Bank, oil markets are expected to remain volatile as the market contemplates the new production cut agreement.

"The final 9.7mb/d cut in output is still the biggest coordinated supply agreement the market has ever seen. G20 producers also agreed to reduce output; however, they failed to set any individual targets."

"An end to the price war and this resultant supply agreement should support prices in the short-term."

"However, it fails to completely fill the hole left by the hit in demand from COVID-19. This should see prices remain depressed as inventories continue to rise in coming months."