# Oil leaps 6% as OPEC+ shocks markets by cutting output target

> OPEC+ surprised markets by announcing a cut to its output target, and oil jumped about 6% in the following session. Some analysts warned that reduced demand could emerge if refiners pull back at higher prices, while others raised Brent forecasts toward $100 per barrel.

- Date: 2023-04-02 · published 2023-04-02T12:00:00.000Z
- Category: policy · region Global · magnitude high
- Page: https://feedsoft.ai/events/7946-oil-leaps-6-as-opec-shocks-markets-by-cutting-output-target
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

A tighter supply outlook lifts crude and energy-linked costs, which feeds through to diesel, freight and fertilizer costs for feed producers. Higher crude also tends to support biofuel economics and vegetable oil prices.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲
- DIESEL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2023-04-03 | 1 | +8.4% | 4.0 | Describes the surprise OPEC+ target cut as the trigger for the sharp oil rally and higher Brent forecasts. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2021-03-04 | [OPEC shocks oil markets with plan to keep crude output constrained](https://feedsoft.ai/events/48041-opec-shocks-oil-markets-with-plan-to-keep-crude-output-constrained.md) | +5.1% | -3.5% |
| WTI | 2019-11-21 | [Oil Prices Surge as OPEC Looks to Cut Output \| INN](https://feedsoft.ai/events/56233-oil-prices-surge-as-opec-looks-to-cut-output-inn.md) | +2.2% | +7.8% |
| WTI | 2022-09-29 | [Oil slips after hitting $90/bbl as OPEC+ considers output cut](https://feedsoft.ai/events/39760-oil-slips-after-hitting-90-bbl-as-opec-considers-output-cut.md) | +6.8% | +7.8% |
| WTI | 2023-12-01 | [Oil Futures Lower as Market Ponders OPEC Cuts](https://feedsoft.ai/events/32494-oil-futures-lower-as-market-ponders-opec-cuts.md) | -8.8% | -5.2% |
| WTI | 2022-09-27 | [Russia seen suggesting OPEC+ cuts oil output by 1 mln bpd - source](https://feedsoft.ai/events/39761-russia-seen-suggesting-opec-cuts-oil-output-by-1-mln-bpd-source.md) | +9.0% | +11.1% |
| BRENT | 2021-03-04 | [OPEC shocks oil markets with plan to keep crude output constrained](https://feedsoft.ai/events/48041-opec-shocks-oil-markets-with-plan-to-keep-crude-output-constrained.md) | +5.2% | -1.3% |
| BRENT | 2019-11-21 | [Oil Prices Surge as OPEC Looks to Cut Output \| INN](https://feedsoft.ai/events/56233-oil-prices-surge-as-opec-looks-to-cut-output-inn.md) | +2.3% | +7.2% |
| BRENT | 2022-09-29 | [Oil slips after hitting $90/bbl as OPEC+ considers output cut](https://feedsoft.ai/events/39760-oil-slips-after-hitting-90-bbl-as-opec-considers-output-cut.md) | +4.9% | +5.4% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2023-04-02/oil-surges-after-opec-makes-unexpected-crude-production-cut
- reuters.com: https://www.reuters.com/business/energy/oil-soars-more-than-5bbl-jolted-by-surprise-opec-output-cuts-2023-04-02/

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