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OPEC+ agreed to cut output by 2 million barrels per day from November, a move that Saudi Arabia said was needed to respond to rising Western interest rates and a weaker global economy. Analysts estimated the real cut would be far smaller, about 0.4 to 1.1 million bpd, because several members were already producing below quota.
A headline cut of this size tightens crude supply and supports oil prices, which feeds into diesel and freight costs for feed producers. The effective reduction is smaller than the headline, so the price impact may be more limited.
reuters.comAhmad Ghaddar, Alex Lawler, Rowena EdwardsOct 4, 2022After 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 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.
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.
