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A technical committee of OPEC and its allies recommended a provisional 600,000 bpd output cut in response to coronavirus demand losses. Russia had not yet given its final position and asked for more time for consultations.
Saudi Arabia needs about $80 per barrel to balance its budget, while Russia needs about $42.
Uncertainty over Russia's participation weakens the case for deeper cuts, which leaves crude prices exposed to coronavirus demand weakness and affects fuel costs in feed supply chains.
aljazeera.comReutersFeb 6, 2020After 187 past neutral policy events, Crude Oil (WTI) moved a median -0.1% over 5 sessions (49% higher; middle half -4.0% to +3.5%), and +0.1% over 20.
After 175 past neutral policy events, Crude Oil (Brent) moved a median -0.9% over 5 sessions (45% higher; middle half -3.6% to +3.0%), and +0.7% 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.
