Oil prices gains after OPEC+ surprise output cuts, Inflation worries resurfaced

Early Asian trading on Monday saw a sharp increase in oil prices after OPEC+ unexpectedly reduced production further to calm markets shaken by concerns over economic growth & a possible banking crisis.

The Organization of the Petroleum Exporting Countries & allies, or OPEC+, defied earlier predictions that the cartel would keep output by announcing on Sunday that it would reduce produce by about 1.16 million barrels every day (bpd).

Iraq and the United Arab Emirates each contribute 144,000 bpd and 211,000 bpd, respectively.

However, the OPEC’s actions come as oil prices plunged to fifteen month lows in Mar as a result of worries about sluggish growth in the economy and weakening crude demand stoked by the failure of several U.S. institutions.

The Biden Administration stated that it is going to keep to work towards lowering gas costs for consumers and that the OPEC production cuts were not prudent.