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OPEC countries agreed their first supply cut in eight years, reducing output by 1.2 million barrels per day from January. Non-OPEC producers, including Russia, are expected to cut a further 600,000 barrels per day.
Brent rose 10 percent to $51.94 a barrel.
The cut targets the oversupply that had halved oil prices since 2014, so it lifts energy costs for feed producers and transport. It also signals that producer coordination can support prices, which tends to raise the cost of energy-linked inputs.
bbc.comNov 30, 2016After 442 past bullish policy events, Crude Oil (Brent) moved a median +1.4% over 5 sessions (60% higher; middle half -2.0% to +4.9%), and +2.1% over 20.
After 438 past bullish policy events, Crude Oil (WTI) moved a median +0.9% over 5 sessions (61% higher; middle half -2.2% to +4.6%), and +2.0% over 20.
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.
OPEC cut plus expected non-OPEC cuts of 600k bpd tighten supply; Brent rose about 10% intraday.
BBC reported the first OPEC supply cut in eight years plus expected non-OPEC cuts, with Brent up about 10%, which tightens expected supply.
