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A Bloomberg survey showed OPEC output fell 530,000 bpd in December to 32.6 million bpd, the sharpest drop since January 2017. Saudi Arabia cut back deliberately while Iran faced U.S. sanctions and Libya had protest-related losses.
Brent was about $56, 35 percent below its October peak.
Sharper supply reductions support crude prices, though investors doubt cuts are deep enough to offset expected shale growth. Energy price direction feeds into diesel and freight costs for feed buyers.
rigzone.comGrant SmithJan 2, 2019After 656 past bullish geopolitics events, Crude Oil (Brent) moved a median +1.9% over 5 sessions (63% higher; middle half -2.7% to +6.6%), and +0.7% over 20.
After 626 past bullish geopolitics events, Crude Oil (WTI) moved a median +2.1% over 5 sessions (62% higher; middle half -2.3% to +8.5%), and +1.6% 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.
