# Oil jumps over 10 percent as OPEC finalizes output cut deal | Reuters

> OPEC agreed to cut oil production by about 1.2 million barrels per day from January, its first output curb since 2008, lowering its ceiling to 32.5 million bpd. Saudi Arabia will take the largest share of the cut, and crude prices jumped more than 10 percent to above $50 a barrel.

- Date: 2016-11-30 · published 2016-11-30T12:00:00.000Z
- Category: policy · region Global · magnitude high
- Page: https://feedsoft.ai/events/8564-oil-jumps-over-10-percent-as-opec-finalizes-output-cut-deal-reuters
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

A coordinated supply cut of this size tightens crude balances and lifts energy prices. Higher crude supports diesel and energy costs for feed mills and can encourage biofuel-linked demand for vegetable oils, although analysts expected the rally might not last.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2016-11-30 | 1 | +8.1% | 3.8 | OPEC's finalized first output cut since 2008 (to 32.5M bpd) is a direct supply-side driver that lifted Brent by roughly the size of the observed move. |
| BRENT | 2016-12-01 | 1 | +9.0% | 3.6 | OPEC finalized a 1.2m bpd output cut from January and crude jumped more than 10%, which is the direct supply-side catalyst. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2016-11-30 | [Oil up more than 8 percent as OPEC finalizes output cut deal](https://feedsoft.ai/events/8571-oil-up-more-than-8-percent-as-opec-finalizes-output-cut-deal.md) | +12.5% | +19.3% |
| WTI | 2016-11-30 | [US crude settles up 9.3 percent after OPEC finalizes output cut deal](https://feedsoft.ai/events/8569-us-crude-settles-up-9-3-percent-after-opec-finalizes-output-cut-deal.md) | +12.5% | +19.3% |
| WTI | 2020-06-06 | [OPEC, Allies Finalize Deal to Extend Oil-Output Cuts](https://feedsoft.ai/events/52510-opec-allies-finalize-deal-to-extend-oil-output-cuts.md) | -8.3% | +2.6% |
| WTI | 2017-09-22 | [Oil rises nearly 1 percent as OPEC defers extension of output cuts](https://feedsoft.ai/events/69123-oil-rises-nearly-1-percent-as-opec-defers-extension-of-output-cuts.md) | +2.0% | +1.4% |
| WTI | 2016-12-01 | [Oil soars, Brent hits 16-month high after OPEC output deal \| Reuters](https://feedsoft.ai/events/9699-oil-soars-brent-hits-16-month-high-after-opec-output-deal-reuters.md) | +0.8% | +8.8% |
| BRENT | 2016-11-30 | [Oil up more than 8 percent as OPEC finalizes output cut deal](https://feedsoft.ai/events/8571-oil-up-more-than-8-percent-as-opec-finalizes-output-cut-deal.md) | +16.7% | +22.1% |
| BRENT | 2016-11-30 | [US crude settles up 9.3 percent after OPEC finalizes output cut deal](https://feedsoft.ai/events/8569-us-crude-settles-up-9-3-percent-after-opec-finalizes-output-cut-deal.md) | +16.7% | +22.1% |
| BRENT | 2020-06-06 | [OPEC, Allies Finalize Deal to Extend Oil-Output Cuts](https://feedsoft.ai/events/52510-opec-allies-finalize-deal-to-extend-oil-output-cuts.md) | -7.2% | +3.3% |

## Sources

- reuters.com: https://www.reuters.com/article/business/oil-jumps-over-10-percent-as-opec-finalizes-output-cut-deal-idUSKBN13O06N/

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