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OPEC reached its first deal to cut oil output in years, and oil was expected to rally in the near term. Analysts warned that prices would be volatile as traders who had positioned for a rally took profits.
Doubts were raised about whether some members would meet their production commitments.
Uncertainty over compliance means crude prices may swing sharply, which affects energy costs for feed production and transport.
reuters.comDevika Krishna KumarDec 1, 2016After 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.
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.
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.
