# OPEC+ production cut helps reduce ringgit volatility

> 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.

- Date: 2020-04-14 · published 2020-04-14T12:00:00.000Z
- Category: policy · region Global · magnitude medium
- Page: https://feedsoft.ai/events/53934-opec-production-cut-helps-reduce-ringgit-volatility
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md)

## Why it matters

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.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲
- USDMYR: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2018-12-07 | [OPEC and allies agree to cut oil production](https://feedsoft.ai/events/10629-opec-and-allies-agree-to-cut-oil-production.md) | +2.2% | -6.2% |
| WTI | 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) | +12.5% | +19.3% |
| WTI | 2023-04-03 | [Why did OPEC cut oil production? Key reasons explained](https://feedsoft.ai/events/36321-why-did-opec-cut-oil-production-key-reasons-explained.md) | +5.4% | -0.0% |
| WTI | 2016-11-30 | [OPEC Production Cut: What It Really Means for Oil Prices \| Fortune](https://feedsoft.ai/events/74026-opec-production-cut-what-it-really-means-for-oil-prices-fortune.md) | +12.5% | +19.3% |
| WTI | 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) | -11.0% | -7.4% |
| BRENT | 2018-12-07 | [OPEC and allies agree to cut oil production](https://feedsoft.ai/events/10629-opec-and-allies-agree-to-cut-oil-production.md) | +2.2% | -2.9% |
| 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 | 2023-04-03 | [Why did OPEC cut oil production? Key reasons explained](https://feedsoft.ai/events/36321-why-did-opec-cut-oil-production-key-reasons-explained.md) | +7.4% | +1.0% |

## Sources

- themalaysianreserve.com: https://themalaysianreserve.com/2020/04/14/opec-production-cut-helps-reduce-ringgit-volatility/

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