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OPEC and allied producers, known as OPEC+, agreed an additional 500,000 bbl/d crude output cut, bringing total adjustments to 1.7 mb/d. Saudi Arabia will keep its 400,000 bbl/d voluntary contribution, and Russia agreed a 300,000 bbl/d quota for Q1 2020.
The cuts run until the next meeting in early March.
Deeper supply cuts tighten crude markets and support diesel and energy costs for feed mills, transport and grain logistics. Higher crude also lifts biofuel economics, which can support soybean oil and corn demand.
enerdata.netFeb 11, 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.
After 90 past bullish policy events, ULSD / Diesel moved a median +1.4% over 5 sessions (66% higher; middle half -1.9% to +4.1%), and +0.1% over 20.
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.
