The oil price moved significantly higher today before pulling back in the American trading session after reports that Saudi Arabia plan to reduces the amount of supplies to the market

At 8.02pm (GMT) the WTI crude oil was trading at $46.02c after trading as high as $46.70 earlier in the day.

There are rumors swirling in the market that Saudi Arabia, the world’s largest oil supplier plans to cut oil exports to Asia by 300,000 barrels a day as well as cut overall supply to the US by around 35 percent in order to boost prices.

The news was initially good for the oil price but worries continue to persist about the amount of oil production coming out of the US with new rigs coming on line on a weekly basis.

“There is still a risk that U.S. inventories, shale production will offset the efforts from OPEC nonmembers when it comes to trimming the oversupply in the markets,” noted Jameel Ahmad, Vice president of market research at FXTM”

According to today’s prices, oil is at about fair value with plenty of buyers waiting to step in should the price move any lower but they should expect the price to shoot significantly higher for big profits,

"When you start to approach $45 a barrel in WTI, you're in an area where you do find some price support and I think there has been some evidence last week of investment flows coming back into crude oil,"said Petromatrix strategist Olivier Jakob.

"You have to be careful not to be too optimistic for now," he said. "Physical differentials are still under pressure and the time structure is still under pressure in Brent. It's a bit premature to call for much higher oil prices." he added.