# OPEC and allies agree to extend record production cut

> OPEC and its allies agreed on June 6 to extend their record 9.7 million bpd production cut through July. Mexico's commitment left July's cut at 9.6 million bpd, and compliance-linked extra cuts were required for May and June overproduction.

- Date: 2020-06-06 · published 2020-06-06T12:00:00.000Z
- Category: geopolitics · region Global · magnitude medium
- Page: https://feedsoft.ai/events/52790-opec-and-allies-agree-to-extend-record-production-cut
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Continued supply restraint supports crude prices, which feeds into energy costs for feed milling and transport and supports demand for biofuel-linked vegetable oils.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲
- USDMXN: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-11-30 | [Opec agrees to extend existing oil production cuts: Abdelmadjid Attar](https://feedsoft.ai/events/50059-opec-agrees-to-extend-existing-oil-production-cuts-abdelmadjid-attar.md) | +1.5% | +4.3% |
| WTI | 2018-12-07 | [OPEC and Russia agree to slash oil production \| CNN Business](https://feedsoft.ai/events/61456-opec-and-russia-agree-to-slash-oil-production-cnn-business.md) | +2.2% | -6.2% |
| WTI | 2018-11-30 | [OPEC Advisory Committee Said to Recommend Oil Production Cut - Bloomberg](https://feedsoft.ai/events/61942-opec-advisory-committee-said-to-recommend-oil-production-cut-bloomberg.md) | +0.1% | -12.1% |
| WTI | 2020-06-08 | [Oil prices top $40 as OPEC+ extends production cuts \| Fox Business](https://feedsoft.ai/events/52796-oil-prices-top-40-as-opec-extends-production-cuts-fox-business.md) | -8.3% | +2.6% |
| WTI | 2020-04-09 | [OPEC and allies agree to historic 10 million barrel per day oil cut](https://feedsoft.ai/events/53545-opec-and-allies-agree-to-historic-10-million-barrel-per-day-oil-cut.md) | -20.7% | -1.1% |
| BRENT | 2020-11-30 | [Opec agrees to extend existing oil production cuts: Abdelmadjid Attar](https://feedsoft.ai/events/50059-opec-agrees-to-extend-existing-oil-production-cuts-abdelmadjid-attar.md) | +3.5% | +7.0% |
| BRENT | 2018-12-07 | [OPEC and Russia agree to slash oil production \| CNN Business](https://feedsoft.ai/events/61456-opec-and-russia-agree-to-slash-oil-production-cnn-business.md) | +2.2% | -2.9% |
| BRENT | 2018-11-30 | [OPEC Advisory Committee Said to Recommend Oil Production Cut - Bloomberg](https://feedsoft.ai/events/61942-opec-advisory-committee-said-to-recommend-oil-production-cut-bloomberg.md) | +0.1% | -12.8% |

## Sources

- cnbc.com: https://www.cnbc.com/2020/06/06/opec-and-allies-reportedly-agree-to-extend-record-production-cut.html
- forexcrunch.com: https://www.forexcrunch.com/blog/2020/06/25/usd-mxn-mexican-peso-steady-around-22-75-after-banxico-cuts-rates/

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