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OPEC and allied producers, including Mexico and Kazakhstan, gave final sign-off to a nominal oil output increase of 1 million barrels a day. Oman's oil minister estimated the real addition would be 600,000 to 700,000 barrels a day over about six months.
Additional crude supply tends to pressure oil prices lower, which can ease energy and freight costs for feed producers. The gap between the nominal and real increase limits how much prices will fall.
bloomberg.comGrant SmithJun 23, 2018After 215 past bearish policy events, Crude Oil (WTI) moved a median +0.1% over 5 sessions (51% higher; middle half -4.4% to +3.3%), and +0.2% over 20.
After 210 past bearish policy events, Crude Oil (Brent) moved a median -0.9% over 5 sessions (48% higher; middle half -3.8% to +3.2%), and +0.2% 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.
