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OPEC's first production cuts in eight years are intended to shrink bloated global oil stockpiles to normal levels. OPEC Secretary-General Mohammad Barkindo said the agreement will accelerate the decline in inventories.
Venezuela's oil minister said the deal could lift crude as high as $70 a barrel within nine months.
Lower OPEC output aimed at drawing down inventories should firm crude prices, which feed through to vegetable oil and biofuel economics and energy-linked feed costs.
bloomberg.comLaura Hurst, Annmarie Hordern, Grant SmithDec 1, 2016After 626 past bullish geopolitics events, Crude Oil (WTI) moved a median +2.1% over 5 sessions (62% higher; middle half -2.3% to +8.5%), and +1.6% over 20.
After 656 past bullish geopolitics events, Crude Oil (Brent) moved a median +1.9% over 5 sessions (63% higher; middle half -2.7% to +6.6%), and +0.7% over 20.
After 110 past bullish geopolitics events, Soybean Oil 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, Palm Oil 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.
