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OPEC and non-OPEC producers reached their first joint crude output deal since 2001 in December, cutting about 1.8 million barrels per day. OPEC ministers said reducing the inventory overhang that has depressed prices for over two years was a main goal.
The article argues the overhang points to the need for extended cuts.
Supply restraint supports crude prices, which feed into diesel, fertilizer and freight costs for feed producers and can lift biofuel feedstock demand for soybean oil and corn. Any extension would add upward pressure on energy-linked input costs.
reuters.comAhmad GhaddarFeb 10, 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.
After 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.
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.
