◂ Event Timeline

Jun 6, 2020POLICYGlobal

OPEC, Allies Finalize Deal to Extend Oil-Output Cuts

OPEC and its allies finalized an extension of record oil-production curbs through July. Iraq and Nigeria agreed to slightly deeper cuts to offset their earlier overproduction.

WHY IT MATTERS

The extension and added compensation cuts tighten supply further, supporting crude prices. Stronger crude supports diesel and fertilizer costs for feed producers.

AFFECTSCrude Oil (WTI)▲Crude Oil (Brent)▲

SOURCE
wsj.comBenoit Faucon, Summer Said, David HodariJun 6, 2020

Price reaction & history

Crude Oil (WTI)▲bullishSO FAR1d -3.4%5d -8.3%20d +2.6%

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.

Dec 5, 2019OPEC, allies agree to deepen oil output cuts+0.5%
Nov 30, 2016Oil up more than 8 percent as OPEC finalizes output cut deal+12.5%
Jul 1, 2020Opec and allies extend oil production cuts to end of July+4.2%
Jul 2, 2019OPEC, Russia Agree To Extend Oil Output Cuts Into 2020-2.2%
Feb 7, 2019MEED | Opec+ agrees to extend oil output cuts till March 2020-0.2%

Crude Oil (Brent)▲bullishSO FAR1d -3.4%5d -7.2%20d +3.3%

After 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.

Dec 5, 2019OPEC, allies agree to deepen oil output cuts+0.7%
Nov 30, 2016Oil up more than 8 percent as OPEC finalizes output cut deal+16.7%
Jul 1, 2020Opec and allies extend oil production cuts to end of July+4.3%
Jul 2, 2019OPEC, Russia Agree To Extend Oil Output Cuts Into 2020-0.9%
Feb 7, 2019MEED | Opec+ agrees to extend oil output cuts till March 2020+1.6%

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.

Crude Oil (WTI) WTI · GP ▸

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Crude Oil (Brent) BRENT · GP ▸

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