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An Oil & Gas Journal analysis says OPEC's November 30 agreement to cut output by 1.2 million bpd to 32.5 million bpd was hard to reach but rewarded with higher crude prices. The piece argues the cut is needed to lower global inventories that remain high.
The analysis reinforces that the cut is structural and not a one-time move, which supports the view that crude prices will hold up as inventories fall.
ogj.comDec 5, 2016After 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.
After 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.
