# OPEC Focuses on Shrinking Stockpiles to Pave the Way for $60 Oil - Bloomberg

> 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.

- Date: 2016-12-01 · published 2016-12-01T12:00:00.000Z
- Category: geopolitics · region Global · magnitude high
- Page: https://feedsoft.ai/events/73631-opec-focuses-on-shrinking-stockpiles-to-pave-the-way-for-60-oil-bloomberg
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

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.

## Read by commodity

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

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-11-29 | [OPEC+ Heads to Crucial Talks Seeking Compromise on Oil Cuts - Bloomberg](https://feedsoft.ai/events/50058-opec-heads-to-crucial-talks-seeking-compromise-on-oil-cuts-bloomberg.md) | +1.5% | +4.3% |
| WTI | 2020-04-12 | [Oil News: OPEC+ Deal to Cut Production Reached, Price War Ends - Bloomberg](https://feedsoft.ai/events/53541-oil-news-opec-deal-to-cut-production-reached-price-war-ends-bloomberg.md) | -19.9% | +5.3% |
| WTI | 2018-07-02 | [What higher oil prices mean for OPEC and the U.S. \| Brookings](https://feedsoft.ai/events/63956-what-higher-oil-prices-mean-for-opec-and-the-u-s-brookings.md) | -0.3% | -4.5% |
| WTI | 2018-11-30 | [OPEC Advisory Committee Said to Recommend Oil Production Cut - Bloomberg](https://feedsoft.ai/events/61942-opec-advisory-committee-said-to-recommend-oil-production-cut-bloomberg.md) | +0.1% | -12.1% |
| WTI | 2022-01-25 | [Oil Prices for Jan. 26, 2022: Brent Crude, WTI - Bloomberg](https://feedsoft.ai/events/43302-oil-prices-for-jan-26-2022-brent-crude-wti-bloomberg.md) | +5.6% | +9.6% |
| BRENT | 2020-11-29 | [OPEC+ Heads to Crucial Talks Seeking Compromise on Oil Cuts - Bloomberg](https://feedsoft.ai/events/50058-opec-heads-to-crucial-talks-seeking-compromise-on-oil-cuts-bloomberg.md) | +3.5% | +7.0% |
| BRENT | 2020-04-12 | [Oil News: OPEC+ Deal to Cut Production Reached, Price War Ends - Bloomberg](https://feedsoft.ai/events/53541-oil-news-opec-deal-to-cut-production-reached-price-war-ends-bloomberg.md) | -6.7% | +8.6% |
| BRENT | 2018-07-02 | [What higher oil prices mean for OPEC and the U.S. \| Brookings](https://feedsoft.ai/events/63956-what-higher-oil-prices-mean-for-opec-and-the-u-s-brookings.md) | -3.1% | -4.9% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2016-12-01/opec-focuses-on-shrinking-stockpiles-to-pave-the-way-for-60-oil

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