Apart from OPEC’s ~ 10m BPD cut in April 2020 at the start of the CV-19 pandemic, OPEC cut production by 2.2m bpd back in Dec 2008. At the time, it was the largest ever cut announced by the organisation.
Crude had hit a high that year of more than $140/barrel in July 2008 but had fallen by more than $100 to December 2008 as GFC impacts escalated.
After the cut, crude ended the year at $35/barrel, climbing to $44 by the end of January 2009 and then to more than $70 a barrel within 6 months.
Different drivers this time but interesting outcome in the 6 months following OPEC’s intervention in Dec 2008.
Meanwhile, Buffett steadily upping Berkshire’s stake in OXY and China just issued its first batch of crude oil import quotas for 2023, nearly 3 months earlier than usual.
