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Industry analysts reacted to OPEC's six-month agreement to cut about 1.2 million bpd, with Wood Mackenzie saying it is significant and forecasting crude averaging $55-60 in 2017. Quotas include Saudi Arabia at about 10 million bpd, Iraq cutting 210,000 bpd, the UAE 139,000 bpd and Kuwait 131,000 bpd.
Iran was allowed a slight increase.
Quota-based cuts of this size underpin a higher crude price outlook, which supports biofuel feedstock demand and raises energy and fertilizer costs for feed producers. Compliance uncertainty remains the key risk to that outlook.
aapg.orgDavid Brown, EXPLORER CorrespondentFeb 1, 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.
