(VOVWORLD) - Oil prices surged on Monday after Saudi Arabia and other OPEC+ producers announced a surprise round of output cuts, a potentially ominous sign for global inflation just days after a slowdown in U.S. price data had boosted market optimism.
 An oil and gas drilling platform stands offshore near Dauphin Island, Alabama, October 5, 2013. (Photo: REUTERS) |
Brent oil futures jumped 4.3 USD to more than 84 USD a barrel on news output would be cut by around 1 million barrels per day, while U.S. crude climbed more than 4 USD to nearly 80 USD.
The change comes before a virtual meeting of an OPEC+ ministerial panel, which includes Saudi Arabia and Russia.
The Biden administration said it saw the move announced by the producers as unwise.
Last month, Brent fell towards 70 USD a barrel, the lowest in 15 months, on concern that a global banking crisis and rising interest rates would hit demand despite lower OPEC oil output in March due to oilfield maintenance in Angola and a halt in some of Iraq’s exports.