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OPEC+ agreed to raise oil output by 400,000 barrels per day each month from August until the 5.8 million barrels per day of halted production is restored, around September 2022. Baselines for the UAE, Saudi Arabia, Russia, Kuwait and Iraq rise from May 2022.
Brent traded near $73.59 a barrel after the announcement.
Reuters estimated the baseline changes would add about 1.63 million barrels per day of supply from May 2022. That added supply is bearish for crude, which feeds into biofuel and energy costs.
db.forbesmiddleeast.comNirupam Banerjee, Cherry Aisne Trinidad, Sumit KhannaJul 18, 2021After 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.
The monthly output increase announcement, with Brent near $73.59, set up the subsequent selloff.
