Oil prices rise by 5% after OPEC's surprise output cut decision
Brent Crude had its sharpest price increase in almost a year on Monday after reports that major oil producers will slash their output.
Oil prices jumped more than 5% on Monday after the OPEC+ alliance announced plans to cut oil production by an additional 1.16 million barrels per day in a surprise decision that will likely exacerbate tensions with Europe and the United States.
Brent Crude rose 5.31% to $84.13 a barrel, its sharpest price increase in almost a year.
The move by the 23-member group including Saudi Arabia, Russia, Kuwait, the United Arab Emirates and Iraq came after the bloc said in October that it would maintain production cuts at 2 million bpd until the end of the year. OPEC+ accounts for about 40% of the world's crude oil output.
Following the announcement, combined oil cuts by OPEC+ members will add up to around 1.16 million bpd, bringing the total volume produced down to 3.66 million bpd, or 3.7% of global demand.
