# Column: OPEC's output restraint tightens oil inventories and spreads

> Brent futures have moved into their largest and most sustained backwardation since mid-2014, with the market's prompt prices trading above deferred contracts. The column attributes the tightening of inventories and spreads to OPEC output restraint.

- Date: 2018-01-25 · published 2018-01-25T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/67144-column-opec-s-output-restraint-tightens-oil-inventories-and-spreads
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Steep backwardation signals tight prompt crude supply, which lifts diesel and energy costs for feed mills and transport and tends to support the energy-linked component of grain and oilseed prices.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2025-05-28 | [Oil gains on supply concerns, investors await July OPEC+ output decision](https://feedsoft.ai/events/24836-oil-gains-on-supply-concerns-investors-await-july-opec-output-decision.md) | +4.1% | +6.9% |
| WTI | 2026-05-22 | [Brent’s $100 Forecast May Understate the Risk of a Tighter Oil Market \| Investing.com AU](https://feedsoft.ai/events/19433-brent-s-100-forecast-may-understate-the-risk-of-a-tighter-oil-market-investing.md) | -9.1% | -21.6% |
| WTI | 2017-04-12 | [Syria, OPEC, and Oil Prices](https://feedsoft.ai/events/71674-syria-opec-and-oil-prices.md) | -5.5% | -11.4% |
| WTI | 2017-02-01 | [Oil Rises To 3-Week High as Dollar Slips, OPEC Cuts Output \| Stock News & Stock Market Analysis - IBD](https://feedsoft.ai/events/72672-oil-rises-to-3-week-high-as-dollar-slips-opec-cuts-output-stock-news-and-stock.md) | -1.1% | +2.0% |
| WTI | 2016-12-01 | [C$ strengthens as oil extends rally on OPEC deal](https://feedsoft.ai/events/73708-c-strengthens-as-oil-extends-rally-on-opec-deal.md) | +0.8% | +8.8% |
| BRENT | 2025-05-28 | [Oil gains on supply concerns, investors await July OPEC+ output decision](https://feedsoft.ai/events/24836-oil-gains-on-supply-concerns-investors-await-july-opec-output-decision.md) | +3.7% | +6.1% |
| BRENT | 2017-01-19 | [Column - OPEC output cuts boost appeal of light crude, but market yet to respond: Russell](https://feedsoft.ai/events/73134-column-opec-output-cuts-boost-appeal-of-light-crude-but-market-yet-to-respond.md) | +1.6% | +2.4% |
| BRENT | 2026-05-22 | [Brent’s $100 Forecast May Understate the Risk of a Tighter Oil Market \| Investing.com AU](https://feedsoft.ai/events/19433-brent-s-100-forecast-may-understate-the-risk-of-a-tighter-oil-market-investing.md) | -11.3% | -23.1% |

## Sources

- reuters.com: https://www.reuters.com/article/oil-prices-kemp/column-opecs-output-restraint-tightens-oil-inventories-and-spreads-kemp-idUSL8N1PK5OI/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.