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OPEC and allied producers, including Russia, agreed to cut oil output by a deeper-than-expected amount after two days of meetings. The decision responded to a glut that had pushed crude prices down roughly a third since early October.
A coordinated supply cut tightens crude balances and tends to lift energy prices, which feeds into biofuel margins and feed input costs.
nytimes.comDec 7, 2018After 442 past bullish policy events, Crude Oil (Brent) moved a median +1.4% over 5 sessions (60% higher; middle half -2.0% to +4.9%), and +2.1% over 20.
After 438 past bullish policy events, Crude Oil (WTI) moved a median +0.9% over 5 sessions (61% higher; middle half -2.2% to +4.6%), and +2.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
The OPEC+ agreement on 2018-12-07 to cut output more than expected directly tightened expected supply and drove the Brent jump.
