# Opec countries agree first oil output cut in eight years - BBC News

> 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.

- Date: 2016-11-30 · published 2016-11-30T12:00:00.000Z
- Category: policy · region Global · magnitude high
- Page: https://feedsoft.ai/events/8565-opec-countries-agree-first-oil-output-cut-in-eight-years-bbc-news
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

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.

## 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 cut plus expected non-OPEC cuts of 600k bpd tighten supply; Brent rose about 10% intraday. |
| BRENT | 2016-12-01 | 1 | +9.0% | 3.6 | BBC reported the first OPEC supply cut in eight years plus expected non-OPEC cuts, with Brent up about 10%, which tightens expected supply. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2019-12-05 | [OPEC, allies agree to deepen oil output cuts](https://feedsoft.ai/events/55490-opec-allies-agree-to-deepen-oil-output-cuts.md) | +0.7% | +7.4% |
| BRENT | 2022-10-01 | [Oil up nearly 3% as OPEC+ agrees to small oil output cut](https://feedsoft.ai/events/39515-oil-up-nearly-3-as-opec-agrees-to-small-oil-output-cut.md) | +11.3% | +7.7% |
| BRENT | 2016-11-30 | [Oil Up 7 Percent as Market Awaits Details of First OPEC Production Cut in Eight Years](https://feedsoft.ai/events/74004-oil-up-7-percent-as-market-awaits-details-of-first-opec-production-cut-in-eight.md) | +16.7% | +22.1% |
| BRENT | 2017-12-01 | [Oil near 2½-year highs after OPEC extends output cuts](https://feedsoft.ai/events/67641-oil-near-21-2-year-highs-after-opec-extends-output-cuts.md) | -2.0% | +4.9% |
| BRENT | 2016-11-30 | [OPEC agrees first output cut since 2008, details unclear](https://feedsoft.ai/events/8567-opec-agrees-first-output-cut-since-2008-details-unclear.md) | +16.7% | +22.1% |
| WTI | 2019-12-05 | [OPEC, allies agree to deepen oil output cuts](https://feedsoft.ai/events/55490-opec-allies-agree-to-deepen-oil-output-cuts.md) | +0.5% | +4.7% |
| WTI | 2022-10-01 | [Oil up nearly 3% as OPEC+ agrees to small oil output cut](https://feedsoft.ai/events/39515-oil-up-nearly-3-as-opec-agrees-to-small-oil-output-cut.md) | +16.5% | +10.2% |
| WTI | 2016-11-30 | [Oil Up 7 Percent as Market Awaits Details of First OPEC Production Cut in Eight Years](https://feedsoft.ai/events/74004-oil-up-7-percent-as-market-awaits-details-of-first-opec-production-cut-in-eight.md) | +12.5% | +19.3% |

## Sources

- bbc.com: https://www.bbc.com/news/business-38155185

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