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OPEC and its allies, led by Russia, agreed on Monday to a small output cut of 100,000 barrels per day. The group scheduled its next meeting for October 5 but said it could meet earlier to adjust production.
This effectively gives the Saudi chairman power to respond to market developments as they arise.
Giving the chairman discretion to act quickly raises the chance of further supply moves, which adds upside risk to crude and energy input costs.
reuters.comMaha El DahanSep 5, 2022After 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.
