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Saudi Arabia and Russia prolonged their unilateral oil production cuts by three months, a larger move than traders expected. Saudi output is held near 9 million barrels per day, and Russia's export reduction is 300,000 barrels per day.
Brent rose about 1.5% to around $90 a barrel.
A larger-than-expected cut tightens crude supply and supports higher energy prices, which raise diesel, freight and fertilizer costs for feed producers. Stronger crude can also support biofuel demand for vegetable oils and corn.
worldoil.comGrant Smith, BloombergSep 5, 2023After 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.
After 90 past bullish policy events, ULSD / Diesel moved a median +1.4% over 5 sessions (66% higher; middle half -1.9% to +4.1%), and +0.1% 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.
