# OPEC Production Cut: What It Really Means for Oil Prices | Fortune

> Oil and US energy shares jumped more than 8 percent after OPEC agreed to cut output by about 1.2 million barrels per day. Saudi Arabia will take the largest cut, and Russia has committed to about 300,000 barrels per day, though the reduction is smaller than headline figures suggest because Indonesia's output is no longer counted.

- Date: 2016-11-30 · published 2016-11-30T12:00:00.000Z
- Category: policy · region Global · magnitude medium
- Page: https://feedsoft.ai/events/74026-opec-production-cut-what-it-really-means-for-oil-prices-fortune
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

The effective supply reduction is smaller than announced, and it depends on Russia's measurement and delivery, which limits how much the rally can hold. Still, the cut is expected to reduce the global surplus and support crude prices.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2018-12-03 | [Oil Prices Rise on Expectations for a Production Cut](https://feedsoft.ai/events/10625-oil-prices-rise-on-expectations-for-a-production-cut.md) | +3.7% | -11.0% |
| WTI | 2023-04-03 | [Why did OPEC cut oil production? Key reasons explained](https://feedsoft.ai/events/36321-why-did-opec-cut-oil-production-key-reasons-explained.md) | +5.4% | -0.0% |
| WTI | 2020-05-05 | [Oil prices rally as production cuts mount \| S&P Global](https://feedsoft.ai/events/8044-oil-prices-rally-as-production-cuts-mount-s-and-p-global.md) | +17.7% | +80.3% |
| WTI | 2016-11-30 | [Oil Surges on OPEC Deal to Cut Production - WSJ](https://feedsoft.ai/events/73786-oil-surges-on-opec-deal-to-cut-production-wsj.md) | +12.5% | +19.3% |
| WTI | 2018-12-07 | [OPEC and allies agree to cut oil production](https://feedsoft.ai/events/10629-opec-and-allies-agree-to-cut-oil-production.md) | +2.2% | -6.2% |
| BRENT | 2018-12-03 | [Oil Prices Rise on Expectations for a Production Cut](https://feedsoft.ai/events/10625-oil-prices-rise-on-expectations-for-a-production-cut.md) | +6.0% | -10.4% |
| BRENT | 2023-04-03 | [Why did OPEC cut oil production? Key reasons explained](https://feedsoft.ai/events/36321-why-did-opec-cut-oil-production-key-reasons-explained.md) | +7.4% | +1.0% |
| BRENT | 2020-05-05 | [Oil prices rally as production cuts mount \| S&P Global](https://feedsoft.ai/events/8044-oil-prices-rally-as-production-cuts-mount-s-and-p-global.md) | +16.8% | +64.0% |

## Sources

- fortune.com: https://fortune.com/2016/11/30/oil-prices-opec-meeting/

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