# OPEC: Back from the Depths, But Challenges Remain

> A CSIS commentary says OPEC and OPEC+ agreed at a virtual meeting to extend current cuts through July, with a 9.6 million b/d cut for June and July that falls to 7.7 million b/d for the rest of 2020. The cut is the largest in OPEC history, and WTI has nearly doubled since late April to near $40 a barrel.

- Date: 2020-06-12 · published 2020-06-12T12:00:00.000Z
- Category: policy · region Global · magnitude low
- Page: https://feedsoft.ai/events/52517-opec-back-from-the-depths-but-challenges-remain
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

The planned step-down in cuts after July signals gradually rising supply, which limits crude upside over the longer term. Producers and feed buyers will watch for demand-led backwardation as the market tightens.

## Read by commodity

- WTI: neutral
- BRENT: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-12-03 | [Opec+ agrees output hike from January - Business - DAWN.COM](https://feedsoft.ai/events/49556-opec-agrees-output-hike-from-january-business-dawn-com.md) | +0.5% | +7.0% |
| WTI | 2023-04-03 | [OPEC+ cuts put $100/bbl oil back in sight](https://feedsoft.ai/events/36571-opec-cuts-put-100-bbl-oil-back-in-sight.md) | +5.4% | -0.0% |
| WTI | 2021-08-31 | [Opec to remain flexible even as it plans for possible output increase \| The National](https://feedsoft.ai/events/45730-opec-to-remain-flexible-even-as-it-plans-for-possible-output-increase-the.md) | -1.2% | +8.9% |
| WTI | 2021-08-30 | [OPEC+ likely to keep oil output policy from September unchanged, sources say \| Reuters](https://feedsoft.ai/events/45470-opec-likely-to-keep-oil-output-policy-from-september-unchanged-sources-say.md) | +0.8% | +9.7% |
| WTI | 2020-12-03 | [OPEC, Russia to nudge up oil output after hit from pandemic \| The Seattle Times](https://feedsoft.ai/events/49559-opec-russia-to-nudge-up-oil-output-after-hit-from-pandemic-the-seattle-times.md) | +0.5% | +7.0% |
| BRENT | 2020-12-03 | [Opec+ agrees output hike from January - Business - DAWN.COM](https://feedsoft.ai/events/49556-opec-agrees-output-hike-from-january-business-dawn-com.md) | +1.7% | +7.3% |
| BRENT | 2023-04-03 | [OPEC+ cuts put $100/bbl oil back in sight](https://feedsoft.ai/events/36571-opec-cuts-put-100-bbl-oil-back-in-sight.md) | +7.4% | +1.0% |
| BRENT | 2021-08-31 | [Opec to remain flexible even as it plans for possible output increase \| The National](https://feedsoft.ai/events/45730-opec-to-remain-flexible-even-as-it-plans-for-possible-output-increase-the.md) | -0.4% | +8.7% |

## Sources

- csis.org: https://www.csis.org/analysis/opec-back-depths-challenges-remain

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