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OPEC+ held a record-short online meeting and agreed to raise its collective oil production target by 400,000 barrels per day for March, sticking to its previously planned increase. The decision came after oil prices rose about 15% during January amid geopolitical tensions.
The group avoided discussing geopolitics or its limited spare capacity.
With little spare capacity, a modest planned increase does little to ease tight crude supply, which keeps energy costs elevated for feed producers through diesel, natural gas and fertilizer. Higher energy costs also feed into freight and processing expenses.
reuters.comAhmad GhaddarFeb 4, 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.
