Oil prices are on the move and, according to some traders, the rally is coming sooner than expected.
Brent crude has fallen below $40 a barrel for the first time since mid-2016, with traders expecting a rise to $40 or higher this week.
But with oil futures contracts moving higher, there is a chance Brent could slip below $50 before long.
The move is the result of an agreement between Brent crude and the US Federal Reserve, which will see the price of Brent rise to around $40 per barrel by the end of the year.
It is expected that the deal will boost the price and boost the US economy by $5 trillion.
However, analysts say Brent could easily fall to $30 a barrel if the deal is not completed before the end, with the Federal Reserve and OPEC not meeting their agreements.
According to data from Bloomberg, Brent crude is trading around $33 a barrel.
If the agreement is not reached before the middle of the week, the price could fall to just $25 a barrel, with a sharp fall to around half the price reached on Friday.
In the US, Brent oil has fallen more than $30 to $33 per barrel, the lowest price recorded since June of last year.
The Federal Reserve has said it will increase its benchmark interest rate by a quarter point in September, which would push oil prices lower.
As a result, the Brent price is currently around $42 a barrel compared to around the $48 a barrel it was last week.
The fall in Brent crude has caused some concern that the global economy could suffer as a result.
“The dollar has been on a tear, which is why there is concern about the impact on global growth, particularly the US and Europe,” said James O’Sullivan, chief market strategist at IG.
While the dollar has also weakened against a basket of currencies, the effect is much more subtle.
Global GDP growth has contracted by 0.3 per cent over the last year, the fastest in nearly three decades.
So while the US has enjoyed a rebound, the economy is still a long way from recovery.
“A lot of people think that the economy was recovering from the Great Recession, but they have not seen it yet,” said Mr O’Brien.
On Friday, the US added 1.4 million jobs, the best employment gain in six months.
Meanwhile, Brent futures are up about $3.75, or about 1 per cent, from Friday’s close.
While some traders say that Brent crude’s fall will not impact the world economy, there are fears that the price will fall if the Fed does not approve the deal.
A $1.50 a barrel oil price was the target for Brent crude traders, but some traders are now seeing a $1 a barrel price as more likely.
There is no sign that the Fed will move the interest rate any higher than its current level of 0.25 per cent.