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OPEC and its allies said they would crack down on members that fail to comply with output cuts, and the panel did not recommend changes to the 7.7 million bpd reduction target. Laggards Iraq, Nigeria and the UAE were pressed to compensate for May-July overproduction, with the compensation period extended to end-December.
Brent and WTI rose about 2% after both had gained more than 4% the previous day.
Tighter enforcement of cuts reduces expected crude supply, which lifts diesel and energy input costs for feed milling and transport. Higher crude also tends to support vegetable oil and biofuel economics.
cnbc.comReutersSep 17, 2020After 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.
Notes both Brent and WTI gained more than 4% the previous day (Sept 16), confirming the size of the move, and shows OPEC+ compliance support added to sentiment.
