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Saudi Arabia and Russia announced on 15 May 2017 that OPEC and non-OPEC producers should extend output cuts for nine months, to March 2018. Ahead of the Vienna meeting, the decision was seen as a choice between rolling over the current deal and deepening the cuts.
Rolling over the cut keeps supply restraint in place, which supports prices, but the market had hoped for deeper cuts. The choice between a rollover and deeper cuts sets the direction of crude prices through the rest of 2017.
reuters.comJohn KempMay 19, 2017After 438 past bullish policy events, Crude Oil (WTI) moved a median +0.9% over 5 sessions (61% higher; middle half -2.2% to +4.6%), and +2.0% over 20.
After 442 past bullish policy events, Crude Oil (Brent) moved a median +1.4% over 5 sessions (60% higher; middle half -2.0% to +4.9%), and +2.1% 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.
