Crude oil futures rose 7% on Monday during early trading in Asia after OPEC+ made a surprise announcement to cut oil production by more than 1 million barrels per day. Saudi Arabia first said it would cut supply by 500,000 barrels per day. Then, other members, such as Kuwait, the United Arab Emirates, and Algeria, joined in. At the same time, Russia stated that the production cut implemented from March to June would continue until the end of 2023. For June contracts, Brent gained 7.29% to $85.58 per barrel, while for May, West Texas Intermediate (WTI) rose 7.44% to sell at $81.25 per barrel at 12:06 am ET.
Novak: Russia slashing oil output by 500K bpd
Russian Deputy Prime Minister Alexander Novak confirmed that Moscow agreed to follow through with the cut in oil production which was announced by Saudi Arabia and the United Arab Emirates on Sunday. According to Novak, Russia will cut its production by 500,000 barrels per day (bpd) until the end of June in coordination wit its OPEC+ allies. Novak criticized the “short-sighted energy policies of the Western countries” and their attempts to introduce a price cap mechanism, warning that these policies create significant risks for global energy security and impact consumers. Kazakhstan also announced a voluntary cut in oil production by 78,000 bpd from May until the end of 2023. NN: I WANT to tell you i told you so. This is the death knell for inflation…… Its off to the races with the FED raising rates…..