Oil prices surge 6% on shock output cuts | Business

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World oil prices soared Monday after several top producers led by Saudi Arabia sprang surprise output cuts despite already angering the United States with a similar move last year. | News24_Business

Crude futures surged almost eight percent at one stage, a day after multiple members of the OPEC+ exporters' alliance unexpectedly slashed production by a total of more than one million barrels per day.The shock reduction will start in May and last until the end of the year, with OPEC+ saying Monday it involves Algeria, Gabon, Iraq, Kazakhstan, Kuwait, Oman, Saudi Arabia and the United Arab Emirates.

At the time, the White House accused OPEC+ of"aligning with Russia", saying the cuts would boost Moscow's revenue and undermine Western sanctions imposed over its invasion of Ukraine. The Kremlin also defended the decision, saying it was"in the interests of global energy markets for world oil prices to remain at a good level".

"With the fizzling out of the banking crisis and the return of optimism to the markets, the price of the barrel was already showing signs of recovering," he noted. Shares in Britain's BP and France's TotalEnergies were up more than five percent in afternoon deals, while Shell rose 4.7 percent.However, the weekend development also fanned concerns over a fresh spike in consumer prices that could put pressure on central banks to push interest rates even higher - and dent the global economy."There's real concern that the surprise decision...

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