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OPEC and non-OPEC producers agreed to raise output by 1 million bpd, but comments from Iran and Iraq suggest the actual increase may be only 500,000 to 770,000 bpd. WTI rose more than 5% immediately after the announcement before gains pared.
Doubts about delivery of the announced increase limit the supply response, supporting crude prices. Energy costs remain a factor for biofuel and feed-input economics.
ig.comShaun MurisonJun 25, 2018After 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.
After 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.
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.
