2023.04.0309:55:00UTC+00Oil Prices Jump After Surprise OPEC Move To Cut Output

Oil prices rose more than 5 percent on Monday after Saudi Arabia and other OPEC+ oil producers on Sunday announced further oil output cuts of around 1.16 million barrels per day.

Benchmark Brent crude futures soared 5.4 percent to $84.20 a barrel, while WTI crude futures were up 5.6 percent at $79.92.

The surprise oil production cut would come into effect from May and last until the end of the year.

Saudi officials claimed the unexpected cut was a "precautionary measure aimed at supporting the stability of the oil market."

The move drew criticism from the White House and prompted speculation that the Biden administration may go for another release of oil from the Strategic Petroleum Reserve.

"We don't think cuts are advisable at this moment given market uncertainty-and we've made that clear," a National Security Council spokesperson said.