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Fitch Ratings senior director Dmitry Marinchenko said the OPEC+ decision on February and March output parameters is positive for oil markets. The agreement extends current terms for most members, while Russia and Kazakhstan may raise output and Saudi Arabia and others will cut further.
Fitch said the consensus reflected difficult negotiations and differing views.
By limiting the chance of a return to surplus, the OPEC+ parameters should support crude prices in the near term. Diverging member views suggest future decisions could be less predictable.
report.azEconomic DepartmentJan 6, 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.
