April 3, 2023

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Surprise OPEC+ Production Cut

Please click here for a chart of oil futures (CL_F).

Note the following:

• In a surprise move, OPEC+ announced a production cut totaling 1.66M barrels per day.
• The chart shows a gap up when oil futures opened Sunday evening.
• The chart shows that before this move up oil had lost ground.  This was due to the fear of the banking crisis increasing the probability of a recession.  In a recession, oil demand goes down.
• The chart shows that oil has now recouped most of the recent losses.