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OPEC and non-OPEC producers agreed on May 25 to extend output cuts of about 1.8 million bpd by nine months to March 2018. Prices fell back below $50 WTI after the announcement, which markets had partly priced in.
Sustained crude output restraint supports energy prices, which firms biofuel and feed-input costs, but the market reaction shows limited upside beyond $50.
oilprice.comGregory BrewMay 28, 2017After 187 past neutral policy events, Crude Oil (WTI) moved a median -0.1% over 5 sessions (49% higher; middle half -4.0% to +3.5%), and +0.1% over 20.
After 175 past neutral policy events, Crude Oil (Brent) moved a median -0.9% over 5 sessions (45% higher; middle half -3.6% to +3.0%), 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.
