OPEC Surprise Shakes the Market!


 Oil prices soared at the start of the week after the market was shocked by OPEC+'s move to cut its oil production.

In the Asian session, Brent crude oil futures traded up to a near 1-month high of $84.95 a barrel following a 6.3% jump.

Meanwhile, US WTI crude oil traded at $80.47 a barrel, bringing it to its strongest level since the end of January.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have shocked the market with production cuts of 1.16 million barrels per day.

With the cut, it is seen to further complicate the outlook for inflation and global interest rates.

This is because, previously the market expected price pressure to decrease and give room to the central bank to stop the current tightening cycle.

In the meantime, the reduction of Iraqi Kurdistan's oil exports following the dispute involving the Kurdish authorities since last week continues to support crude oil.

On the demand side, investors remain positive about China's recovery, with PetroChina and Cnooc Ltd. recently said a recovering domestic economy could help cushion the impact of slower global growth.