# Oil prices rally as production cuts mount | S&P Global

> Crude futures rallied on May 5, 2020 as more producers announced output cuts, with NYMEX June crude settling at $24.56 and ICE July Brent at $30.97. US shale companies including Diamondback, Parsley and Centennial cut output, and majors such as ExxonMobil, Chevron and ConocoPhillips had already announced cuts. The Texas Railroad Commission declined to adopt prorationing.

- Date: 2020-05-05 · published 2020-05-05T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/8044-oil-prices-rally-as-production-cuts-mount-s-and-p-global
- 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

Supply cuts by producers reduce crude supply and support energy prices, which firm the cost base for biofuels and feedstock inputs tied to oil.

## Read by commodity

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

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DIESEL | 2020-05-04 | 5 | +30.1% | 4.7 | May 5 crude rally on mounting output cuts lifted the energy complex, but it falls just after the 5-day window ending May 4, so it mostly confirms the rebound sentiment rather than driving it. |
| DIESEL | 2020-05-18 | 5 | +18.5% | 2.8 | Crude rallied on May 5 as producers announced output cuts, raising refiners' input costs and pushing ULSD futures higher in the following days; this fits an upward 18.5% move. |
| DIESEL | 2020-05-20 | 5 | +17.2% | 2.8 | Mounting US shale and major producer output cuts (reported May 5) tightened expected crude supply and supported crude and ULSD prices, plausibly contributing to the rally, though the event predates the May 14-20 window by about two weeks and is not a direct trigger. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2017-03-01 | [Oil prices rise as OPEC production cut trims supply  \| Globalnews.ca](https://feedsoft.ai/events/72179-oil-prices-rise-as-opec-production-cut-trims-supply-globalnews-ca.md) | -2.2% | -10.4% |
| WTI | 2021-02-01 | [Crude oil futures tick higher as Saudi Arabia's voluntary production cuts begin \| S&P Global](https://feedsoft.ai/events/48813-crude-oil-futures-tick-higher-as-saudi-arabia-s-voluntary-production-cuts-begin.md) | +8.9% | +16.1% |
| WTI | 2016-11-30 | [OPEC Production Cut: What It Really Means for Oil Prices \| Fortune](https://feedsoft.ai/events/74026-opec-production-cut-what-it-really-means-for-oil-prices-fortune.md) | +12.5% | +19.3% |
| 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 | 2021-03-04 | [Oil prices surge as OPEC and its allies extend production cuts \| CNN Business](https://feedsoft.ai/events/48045-oil-prices-surge-as-opec-and-its-allies-extend-production-cuts-cnn-business.md) | +5.1% | -3.5% |
| BRENT | 2017-03-01 | [Oil prices rise as OPEC production cut trims supply  \| Globalnews.ca](https://feedsoft.ai/events/72179-oil-prices-rise-as-opec-production-cut-trims-supply-globalnews-ca.md) | +1.5% | -6.3% |
| BRENT | 2016-11-30 | [OPEC Production Cut: What It Really Means for Oil Prices \| Fortune](https://feedsoft.ai/events/74026-opec-production-cut-what-it-really-means-for-oil-prices-fortune.md) | +16.7% | +22.1% |
| BRENT | 2021-02-01 | [Crude oil futures tick higher as Saudi Arabia's voluntary production cuts begin \| S&P Global](https://feedsoft.ai/events/48813-crude-oil-futures-tick-higher-as-saudi-arabia-s-voluntary-production-cuts-begin.md) | +6.9% | +18.8% |

## Sources

- spglobal.com: https://www.spglobal.com/energy/en/news-research/latest-news/crude-oil/050520-oil-futures-prices-rally-as-production-cuts-mount

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