Loading…
OPEC+ decided to boost January supply in line with previous months, which surprised a market that had expected a pause. Oil swung sharply during the session before ending higher.
The group has been adding 400,000 bpd to its target while falling short of that monthly due to underinvestment in several members.
Actual supply growth is below the headline target because of underinvestment, which limits the bearish impact of the hike. Crude volatility transmits to energy costs that affect ingredient markets.
reuters.comArathy SomasekharDec 2, 2021After 187 past neutral policy events, Crude Oil (WTI) moved a median -0.1% over 5 sessions (49% higher; middle half -4.0% to +3.5%), and +0.1% over 20.
After 175 past neutral policy events, Crude Oil (Brent) moved a median -0.9% over 5 sessions (45% higher; middle half -3.6% to +3.0%), and +0.7% 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.
