◂ Event Timeline

Nov 30, 2016POLICYGlobal

Oil Surges on OPEC Deal to Cut Production

OPEC said it would cut production by 1.2 million barrels a day from 33.6 million bpd. The group also expects non-OPEC producers, including Russia, to add further cuts totaling 600,000 bpd.

WHY IT MATTERS

Combined OPEC and non-OPEC cuts of around 1.8 million bpd would remove a meaningful share of the global glut. This supports crude prices, which feed into energy costs and vegetable oil demand for biofuels.

AFFECTSWTI▲BRENT▲

SOURCE
on.wsj.comBenoit Faucon, Georgi KantchevNov 30, 2016

Price reaction & history

WTI▲bullishSO FAR1d +9.2%5d +12.5%20d +19.3%

After 438 past bullish policy events, WTI moved a median +0.9% over 5 sessions (61% higher; middle half -2.2% to +4.6%), and +2.0% over 20.

Nov 30, 2016OPEC hashes out a major deal to cut oil production — and prices surge worldwide | Vox+12.5%
Dec 7, 2018OPEC and allies agree to cut oil production+2.2%
Nov 30, 2023OPEC+ agrees to oil production cut | Oil & Gas Journal-11.0%
Nov 30, 2017Opec and Russia extend deal to cut oil production through 2018-2.5%
Oct 23, 2019OPEC+ countries to cut further oil production ABC.AZ+2.2%

BRENT▲bullishSO FAR1d +8.1%5d +16.7%20d +22.1%

After 442 past bullish policy events, BRENT moved a median +1.4% over 5 sessions (60% higher; middle half -2.0% to +4.9%), and +2.1% over 20.

Nov 30, 2016OPEC hashes out a major deal to cut oil production — and prices surge worldwide | Vox+16.7%
Dec 7, 2018OPEC and allies agree to cut oil production+2.2%
Nov 30, 2023OPEC+ agrees to oil production cut | Oil & Gas Journal-10.5%
Nov 30, 2017Opec and Russia extend deal to cut oil production through 2018-2.7%
Oct 23, 2019OPEC+ countries to cut further oil production ABC.AZ+2.0%

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.

WTI · GP ▸

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BRENT · GP ▸

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