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Kemp reports that OPEC production cuts have made global crude lighter and sweeter, narrowing Brent's premium over medium sour Oman crude from almost $6 a barrel at the start of 2016 to about $1.25 by early March. The Brent futures curve is in contango through December, while the Oman curve is flat, which points to expected tightness in medium crude.
A narrower sweet-sour spread shows that OPEC's cuts are tightening supply in specific grades, which supports crude prices and raises the cost of diesel and freight for feed supply chains.
reuters.comJohn KempMar 17, 2017After 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.
