# Oil reverses losses to gain 2% as OPEC urges compliance with production cuts

> 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.

- Date: 2020-09-17 · published 2020-09-17T12:00:00.000Z
- Category: policy · region Global · magnitude medium
- Page: https://feedsoft.ai/events/51278-oil-reverses-losses-to-gain-2-as-opec-urges-compliance-with-production-cuts
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

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.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| WTI | 2020-09-16 | 1 | +3.9% | 3.1 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2020-08-19 | [OPEC+ leaders push to maintain production cuts as oil recovery slows](https://feedsoft.ai/events/51534-opec-leaders-push-to-maintain-production-cuts-as-oil-recovery-slows.md) | +1.2% | -11.8% |
| BRENT | 2017-02-26 | [OPEC, non-OPEC reach 86 percent compliance with product cuts \| Al Bawaba](https://feedsoft.ai/events/72414-opec-non-opec-reach-86-percent-compliance-with-product-cuts-al-bawaba.md) | -0.6% | -9.0% |
| BRENT | 2017-03-06 | [OPEC not entirely in compliance with production deal - UPI.com](https://feedsoft.ai/events/71902-opec-not-entirely-in-compliance-with-production-deal-upi-com.md) | -7.3% | -4.5% |
| BRENT | 2016-11-30 | [Oil Surges on OPEC Deal to Cut Production - WSJ](https://feedsoft.ai/events/73786-oil-surges-on-opec-deal-to-cut-production-wsj.md) | +16.7% | +22.1% |
| BRENT | 2023-11-30 | [OPEC+ agrees to oil production cut  \| Oil & Gas Journal](https://feedsoft.ai/events/33087-opec-agrees-to-oil-production-cut-oil-and-gas-journal.md) | -10.5% | -5.2% |
| WTI | 2020-08-19 | [OPEC+ leaders push to maintain production cuts as oil recovery slows](https://feedsoft.ai/events/51534-opec-leaders-push-to-maintain-production-cuts-as-oil-recovery-slows.md) | +0.8% | -6.3% |
| WTI | 2017-02-26 | [OPEC, non-OPEC reach 86 percent compliance with product cuts \| Al Bawaba](https://feedsoft.ai/events/72414-opec-non-opec-reach-86-percent-compliance-with-product-cuts-al-bawaba.md) | -1.2% | -12.0% |
| WTI | 2017-03-06 | [OPEC not entirely in compliance with production deal - UPI.com](https://feedsoft.ai/events/71902-opec-not-entirely-in-compliance-with-production-deal-upi-com.md) | -9.6% | -5.2% |

## Sources

- cnbc.com: https://www.cnbc.com/2020/09/17/oil-markets-fuel-demand-opec.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.