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Saudi Arabia said it would unilaterally cut crude output by 1 million barrels per day starting next month. The move came after the group agreed to keep collective OPEC+ output flat.
The kingdom cited worry that a resurgent coronavirus threatens the global economic recovery.
A surprise unilateral cut of this size removes a meaningful volume of supply from the market, which pushes crude prices higher. Higher crude lifts diesel and fuel costs for feed logistics and can support biofuel-linked demand for vegetable oils.
wsj.comSummer Said, Benoit FauconJan 5, 2021After 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.
