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Oil prices surged to their highest since mid-2015 on Monday after OPEC and key non-OPEC producers agreed over the weekend to cut output. Brent topped $57 a barrel for the first time since July 2015, and U.S. Treasury yields hit a more than two-year peak ahead of an expected U.S. rate increase.
The coordinated production cut tightens crude supply expectations, lifting energy costs and feed-related input prices. Higher crude also feeds into biofuel and vegetable oil economics, supporting soy oil and palm oil.
reuters.comDec 12, 2016After 656 past bullish geopolitics events, BRENT moved a median +1.9% over 5 sessions (63% higher; middle half -2.7% to +6.6%), and +0.7% over 20.
After 626 past bullish geopolitics events, WTI moved a median +2.1% over 5 sessions (62% higher; middle half -2.3% to +8.5%), and +1.6% over 20.
After 110 past bullish geopolitics events, SBO moved a median +1.8% over 5 sessions (65% higher; middle half -0.7% to +3.6%), and -0.4% over 20.
After 62 past bullish geopolitics events, PALMOIL moved a median +2.5% over 5 sessions (74% higher; middle half -0.1% to +5.8%), and +4.0% 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.
