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OPEC+ raised its February output target by 400,000 barrels per day, a decision sources said reflected easing concern about a large first-quarter surplus. Internal OPEC+ data seen by Reuters pointed to surpluses of 800,000 bpd in January and 1.3 million bpd in February.
Projected surpluses of that size would add supply pressure on crude, so the group's decision to keep adding barrels is a bearish factor for oil prices. Lower crude tends to ease costs for diesel, freight and biofuel feedstocks.
reuters.comAlex Lawler, Ahmad Ghaddar, Olesya AstakhovaJan 4, 2022After 210 past bearish policy events, Crude Oil (Brent) moved a median -0.9% over 5 sessions (48% higher; middle half -3.8% to +3.2%), and +0.2% over 20.
After 215 past bearish policy events, Crude Oil (WTI) moved a median +0.1% over 5 sessions (51% higher; middle half -4.4% to +3.3%), and +0.2% 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.
