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The OPEC+ production cut is expected to reduce volatility in the ringgit by removing a major supply risk that weighed on oil last month. Analysts said the 9.7 million barrel per day cut was smaller than earlier estimates of 10 to 15 million, and that demand is expected to fall.
The International Energy Agency expects global oil demand to decline in 2020.
A supply cut supports crude prices, which strengthens oil-linked currencies like the ringgit and eases energy-cost pressure. The effect on feed ingredients is indirect, but the cut reduces the chance of a deeper energy price collapse.
themalaysianreserve.comDzulApr 14, 2020After 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.
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.
Not enough comparable past events yet for a historical read.
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.
