NEW YORK (TheStreet) -- Oil prices rallied almost 10% today to nearly $50 on news of an oil production cut agreement from OPEC after the cartel's meeting in Vienna, Austria today, but the stabilization of oil prices is not guaranteed.
"It's remarkable what we saw in today's session," CNBC's Jackie DeAngelis said on this afternoon's "Power Lunch" show.
The agreement trims OPEC's oil production by about 1.2 million barrels per day (bpd) to 32.5 million bpd. The deal was highly anticipated as people hope the cut will help curb the negative effect of a global oil glut that has been weighing on oil prices since 2014.
The gains in oil prices rose throughout the day as more details about the steeper-than-expected cut agreement came out, DeAngelis noted. "We had told you if the market gets that, it's going to be very excited about it," she said.
However, a number of variables create an uncertain future for oil, DeAngelis pointed out. For example, will some OPEC members cheat because they aren't committed to the agreement? Will Saudi Arabia have to bear the bulk of this cut? And will U.S. shale producers respond by ramping up production and effectively pushing prices back down?