Traders Discuss Oil in Response to OPEC Agreement - TheStreet

NEW YORK (TheStreet) --Energy stocks were surging following reports that indicated OPEC had reached a deal to limit its oil production at its informal meeting in Algiers on Wednesday. OPEC said it would reduce oil production to 3.2 million barrels a day, according to Reuters.

In response to the report and the moves in oil and energy stocks shortly after, CNBC's "Trading Nation" segment discussed the oil trade.

BK Asset Management managing director Boris Schlossberg believes there could still be momentum for the stocks following the reported OPEC decision.

"This is very sharp cut. I do think we have the potential for oil to go to $50. Having said this, I just read an article today about the how the oil industry is becoming super-efficient. I think you're going to see a lot of these frackers come online very quickly and add to the supply, and therefore price will top out at the $50 level," he explained.

TradingAnalysis.com founder Todd Gordon pointed to the XLE, the energy ETF to explain why oil is still in a downtrend.

"We haven't broken anything regarding technical resistance yet. Looking at the XLE, until we break through the $48 region, we are technically still in a downtrend, and the energies have been underperforming for a longer period. I understand this is somewhat of a game changer, but the technicals don't show it," Gordon said.