◂ Event Timeline

Dec 1, 2016POLICYGlobal

OPEC reaches first deal to cut oil output since 2008

Oil rose more than 10 percent to over $50 a barrel, its highest in a month, after OPEC reached its first deal to cut output since 2008. Investors anticipated that lower OPEC output would rebalance global crude supply and demand more quickly.

WHY IT MATTERS

Expectations of faster supply-demand rebalancing support crude prices, which pass through to diesel and energy costs for feed mills and transport.

AFFECTSCrude Oil (WTI)▲Crude Oil (Brent)▲

SOURCE
reuters.comDec 1, 2016

Price reaction & history

Crude Oil (WTI)▲bullishSO FAR1d +3.3%5d +0.8%20d +8.8%

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.

Nov 30, 2016OPEC agrees first output cut since 2008, details unclear+12.5%
Jun 6, 2020OPEC, Allies Finalize Deal to Extend Oil-Output Cuts-8.3%
Dec 5, 2019OPEC, allies agree to deepen oil output cuts+0.5%
Nov 30, 2016Saudis to cut oil output by 0.5 million bpd in OPEC deal: source+12.5%
Dec 10, 2016OPEC, non-OPEC agree first global oil pact since 2001+0.8%

Crude Oil (Brent)▲bullishSO FAR1d +4.4%5d +6.6%20d +12.9%

After 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.

Nov 30, 2016OPEC agrees first output cut since 2008, details unclear+16.7%
Jun 6, 2020OPEC, Allies Finalize Deal to Extend Oil-Output Cuts-7.2%
Dec 5, 2019OPEC, allies agree to deepen oil output cuts+0.7%
Nov 30, 2016Saudis to cut oil output by 0.5 million bpd in OPEC deal: source+16.7%
Dec 10, 2016OPEC, non-OPEC agree first global oil pact since 2001+2.7%

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.

Crude Oil (WTI) WTI · GP ▸

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Crude Oil (Brent) BRENT · GP ▸

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