# Oil surges to 1 1/2-year high, Fed rate increase looms

> 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.

- Date: 2016-12-12 · published 2016-12-12T12:00:00.000Z
- Category: geopolitics · region Global · magnitude medium
- Page: https://feedsoft.ai/events/73621-oil-surges-to-1-1-2-year-high-fed-rate-increase-looms
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

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.

## Read by commodity

- SBO: bullish ▲
- WTI: bullish ▲
- BRENT: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2022-03-04 | [Oil surges to multi-year highs as Russian supply shortfall looms](https://feedsoft.ai/events/6279-oil-surges-to-multi-year-highs-as-russian-supply-shortfall-looms.md) | -0.9% | -4.7% |
| BRENT | 2017-11-07 | [Oil eases but Saudi tensions keep 2-1/2 year highs in sight](https://feedsoft.ai/events/68168-oil-eases-but-saudi-tensions-keep-2-1-2-year-highs-in-sight.md) | -1.9% | -2.1% |
| BRENT | 2022-01-19 | [Oil rises to 7-year high as Turkey outage adds to tight supply outlook](https://feedsoft.ai/events/43294-oil-rises-to-7-year-high-as-turkey-outage-adds-to-tight-supply-outlook.md) | +0.8% | +8.7% |
| BRENT | 2024-03-25 | [Crude futures surge 7pc to new four-year high \| Latest Market News](https://feedsoft.ai/events/31381-crude-futures-surge-7pc-to-new-four-year-high-latest-market-news.md) | +1.9% | +2.3% |
| BRENT | 2022-03-06 | [Oil price surges to highest since 2008 on delays in Iranian talks \| Reuters](https://feedsoft.ai/events/6283-oil-price-surges-to-highest-since-2008-on-delays-in-iranian-talks-reuters.md) | -4.6% | -13.0% |
| WTI | 2022-03-04 | [Oil surges to multi-year highs as Russian supply shortfall looms](https://feedsoft.ai/events/6279-oil-surges-to-multi-year-highs-as-russian-supply-shortfall-looms.md) | -1.6% | -6.7% |
| WTI | 2017-11-07 | [Oil eases but Saudi tensions keep 2-1/2 year highs in sight](https://feedsoft.ai/events/68168-oil-eases-but-saudi-tensions-keep-2-1-2-year-highs-in-sight.md) | -1.0% | +0.5% |
| WTI | 2022-01-19 | [Oil rises to 7-year high as Turkey outage adds to tight supply outlook](https://feedsoft.ai/events/43294-oil-rises-to-7-year-high-as-turkey-outage-adds-to-tight-supply-outlook.md) | +1.0% | +7.8% |

## Sources

- reuters.com: https://www.reuters.com/article/markets/commodities/oil-surges-to-1-12-year-high-fed-rate-increase-looms-idUSL5N1E71VH/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.