Oil prices surged early today, following an unexpected announcement by OPEC+ that they would be implementing crude output cuts, which could lead to a tighter market. This move has caused concern over inflation and has irritated the White House.
West Texas Intermediate experienced its largest intraday move in over a year, surging as much as 8%, and is currently trading at $79.60 a barrel as of 9:44 a.m. Singapore time. Additionally, in wider markets, the dollar and Treasury yields have both climbed.
On Sunday, the Organization of Petroleum Exporting Countries and its allies, including Russia, pledged to cut production by over 1 million barrels a day from next month, with Saudi Arabia leading the way with 500,000 barrels. This decision was unexpected, as traders had expected OPEC+ to maintain output levels. The move also came outside the group’s scheduled timetable for reviewing the market and members’ supply