# OPEC deal expected to tighten oil market in 2017: Kemp

> OPEC agreed to cut oil output by almost 1.2 million barrels per day, and nearby futures prices rose around $5 a barrel in response. Analysis from Reuters' Kemp suggests the deal will tighten the oil market in 2017, with the rally partly driven by hedge fund short-covering.

- Date: 2016-12-01 · published 2016-12-01T12:00:00.000Z
- Category: policy · region Global · magnitude medium
- Page: https://feedsoft.ai/events/73628-opec-deal-expected-to-tighten-oil-market-in-2017-kemp
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

A tighter crude market raises energy costs for feed producers and supports biofuel-linked oils. The price gain partly reflects short-covering, so it may be less durable than fundamentals alone.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2016-12-01 | [After OPEC deal, oil expected to rally - for the moment](https://feedsoft.ai/events/9703-after-opec-deal-oil-expected-to-rally-for-the-moment.md) | +0.8% | +8.8% |
| WTI | 2022-02-02 | [With oil markets tightening, OPEC and its allies agree to a small increase in output.](https://feedsoft.ai/events/42629-with-oil-markets-tightening-opec-and-its-allies-agree-to-a-small-increase-in.md) | +1.3% | +25.5% |
| WTI | 2024-02-05 | [OPEC+ to decide on extending oil production cuts into Q2 2024 in March](https://feedsoft.ai/events/31564-opec-to-decide-on-extending-oil-production-cuts-into-q2-2024-in-march.md) | +6.3% | +9.4% |
| WTI | 2024-04-08 | [Oil market to get “extremely tight” if OPEC continues supply cuts, Citadel reports](https://feedsoft.ai/events/30932-oil-market-to-get-extremely-tight-if-opec-continues-supply-cuts-citadel-reports.md) | -1.4% | -9.5% |
| WTI | 2019-10-11 | [Oil markets: OPEC, US-China trade in focus](https://feedsoft.ai/events/56742-oil-markets-opec-us-china-trade-in-focus.md) | +0.6% | +6.4% |
| BRENT | 2016-12-01 | [After OPEC deal, oil expected to rally - for the moment](https://feedsoft.ai/events/9703-after-opec-deal-oil-expected-to-rally-for-the-moment.md) | +6.6% | +12.9% |
| BRENT | 2022-02-02 | [With oil markets tightening, OPEC and its allies agree to a small increase in output.](https://feedsoft.ai/events/42629-with-oil-markets-tightening-opec-and-its-allies-agree-to-a-small-increase-in.md) | +4.1% | +20.3% |
| BRENT | 2024-02-05 | [OPEC+ to decide on extending oil production cuts into Q2 2024 in March](https://feedsoft.ai/events/31564-opec-to-decide-on-extending-oil-production-cuts-into-q2-2024-in-march.md) | +5.7% | +7.3% |

## Sources

- reuters.com: https://www.reuters.com/article/opec-output-kemp-idINL8N1DW3F8/

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