◂ Event Timeline

Oct 24, 2017POLICYGlobal

How Saudi Arabia plans to end the oil glut

Saudi Energy Minister Khalid al-Falih said the kingdom is determined to bring OECD inventories down to their five-year average. He added that producers may keep restraint in place after the pact ends, and that they are keeping their options open on an exit arrangement.

WHY IT MATTERS

Signals of prolonged restraint reduce the risk of a glut when cuts end, supporting crude prices and energy costs for feed buyers.

AFFECTSBRENT▲WTI▲

SOURCE
financialpost.comReutersOct 24, 2017

Price reaction & history

BRENT▲bullishSO FAR1d +1.0%5d +5.6%20d +7.4%

After 442 past bullish policy events, BRENT moved a median +1.4% over 5 sessions (60% higher; middle half -2.0% to +4.9%), and +2.1% over 20.

Apr 1, 2019Saudi Arabia to Extend Deep Oil Output Cuts Into April+2.9%
Sep 5, 2023Saudi Arabia, Russia extend oil production cuts to end of year+2.0%
Jun 5, 2023Saudi Arabia Cuts Oil Production to Boost Prices - The New York Times-1.7%
Sep 8, 2026OPEC+ sticks with plan to keep oil output quotas unchanged | Financial Post+12.9%
Jun 5, 2023Saudi Arabia's 'icing on the cake' oil cut could feed US producers-1.7%

WTI▲bullishSO FAR1d +0.9%5d +4.3%20d +8.2%

After 438 past bullish policy events, WTI moved a median +0.9% over 5 sessions (61% higher; middle half -2.2% to +4.6%), and +2.0% over 20.

Apr 1, 2019Saudi Arabia to Extend Deep Oil Output Cuts Into April+4.9%
Sep 5, 2023Saudi Arabia, Russia extend oil production cuts to end of year+2.1%
Jun 5, 2023Saudi Arabia Cuts Oil Production to Boost Prices - The New York Times-2.2%
Sep 8, 2026OPEC+ sticks with plan to keep oil output quotas unchanged | Financial Post+10.6%
Jun 5, 2023Saudi Arabia's 'icing on the cake' oil cut could feed US producers-2.2%

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.

BRENT · GP ▸

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WTI · GP ▸

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