Following an unexpected announcement by OPEC+ producers to cut output, oil prices have surged. The global benchmark, Brent crude, had a 5.31% increase in cost, rising to $84.13 a barrel. The U.S. benchmark, WTI, surged to $79.83 a barrel, a 5.48% increase.
In total, cutbacks in production will be over one million barrels a day as a “precautionary measure aimed at supporting the stability of the oil market,” says one Saudi energy ministry official, according to Al Jazeera. Cutbacks include 500,000 barrels a day cut by Saudi Arabia, 211,000 barrels a day cut by Iraq, 144,000 barrels cut by the United Arab Emirates and 128,000 barrels cut by Kuwait. Additionally, Russia’s cut of half a million barrels per day would extend through the end of the year.
