Oil rallied the most in more than a year after OPEC+ unexpectedly announced output cuts that threaten to tighten the market and deliver a fresh inflationary jolt to the world economy.
The Organization of Petroleum Exporting Countries and allies, including Russia, pledged to make cuts exceeding 1 million barrels a day starting next month and lasting through the end of the year.
The reduction surprised markets, which had expected the cartel to hold output steady. Adding to the shock, the decision came outside of the group’s scheduled timetable for reviewing the market’s demand and member’s supplies.
