Can Oil Hold 40 USD?

Crude oil rose as traders bought contracts to close out bets that prices will fall and on signs that OPEC will cut production at a meeting next week.

OPEC may cut its output by 2,5 million barrels a day to support oil prices, billionaire hedge-fund manager Boone Pickens said. Traders who were short, or betting that prices would fall, are purchasing futures and closing their positions after oil dropped more than 20% in the past two weeks.

“It seems that 40 USD a barrel is a bastion of support for oil,” said Robert Laughlin, senior broker at MF Global Ltd. in London. “I am expecting OPEC to do something major, there is no option to do nothing.”

Can the 40 dollar support level for crude oil futures hold? For the time being it seems like it will.