# OPEC's Oil Production Agreement Having Unintended Effects, Goldman Says - Business Insider

> Goldman Sachs says the OPEC production agreement has had unintended effects, with oversupply from market-share battles pushing the oil market into contango. In contango, futures trade above spot prices, so traders are willing to pay more for later delivery.

- Date: 2017-03-21 · published 2017-03-21T12:00:00.000Z
- Category: policy · region Global · magnitude low
- Page: https://feedsoft.ai/events/72160-opec-s-oil-production-agreement-having-unintended-effects-goldman-says-business
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Contango signals near-term oversupply and encourages storage, which weighs on spot crude prices and the energy costs that feed into commodity markets.

## Read by commodity

- WTI: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-12-03 | [Here’s What OPEC And Its Allies Agreed Upon On Oil Production](https://feedsoft.ai/events/49560-here-s-what-opec-and-its-allies-agreed-upon-on-oil-production.md) | +0.5% | +7.0% |
| WTI | 2026-04-05 | [OPEC+ to increase oil production by 206,000 bpd in May -  Business & Economy - TASS](https://feedsoft.ai/events/19614-opec-to-increase-oil-production-by-206-000-bpd-in-may-business-and-economy-tass.md) | -13.2% | -7.5% |
| WTI | 2022-08-03 | [OPEC agrees to produce slightly more oil as recession fears loom \| CNN Business](https://feedsoft.ai/events/39949-opec-agrees-to-produce-slightly-more-oil-as-recession-fears-loom-cnn-business.md) | -4.1% | -4.5% |
| WTI | 2024-08-29 | [Iraq assures OPEC of full conformity with oil production guidelines, OPEC says](https://feedsoft.ai/events/28698-iraq-assures-opec-of-full-conformity-with-oil-production-guidelines-opec-says.md) | -7.2% | -9.4% |
| WTI | 2024-02-01 | [OPEC+ monitoring has reviewed crude oil production data for November, December 2023 -  Business & Economy - TASS](https://feedsoft.ai/events/31570-opec-monitoring-has-reviewed-crude-oil-production-data-for-november-december.md) | -2.6% | +3.6% |
| BRENT | 2021-01-05 | [Battered By Covid-19, OPEC Upbeats On Production, Supply Agreement In 2021 - InsideBusiness - Business News in Nigeria](https://feedsoft.ai/events/49058-battered-by-covid-19-opec-upbeats-on-production-supply-agreement-in-2021.md) | +8.9% | +11.2% |
| BRENT | 2024-06-02 | [OPEC+ to extend deep oil production cuts into 2025 \| CNN Business](https://feedsoft.ai/events/29654-opec-to-extend-deep-oil-production-cuts-into-2025-cnn-business.md) | -2.0% | +7.9% |
| BRENT | 2022-03-09 | [Oil prices tumble after UAE says it wants OPEC to increase production \| CNN Business](https://feedsoft.ai/events/5821-oil-prices-tumble-after-uae-says-it-wants-opec-to-increase-production-cnn.md) | -21.5% | -18.3% |

## Sources

- businessinsider.com: https://www.businessinsider.com/opec-oil-production-output-agreement-effects-goldman-2017-3

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