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OPEC and its allies agreed to add 400,000 barrels a day of crude to global markets in January while leaving open the option to adjust the plan at short notice. Oil fell 2.5% to $63.96 a barrel in New York that morning, with crude already in a bear market due to the new coronavirus strain.
The group also faces political pressure from the US over supply and inflation.
The short-notice adjustment clause makes future supply less certain, which adds volatility to crude prices. Lower or more volatile crude affects energy-linked costs in feed and oilseed markets.
worldoil.comSalma El Wardany, Grant Smith, Dina Khrennikova, Javier BlasDec 2, 2021After 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.
After 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.
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.
