HomeIndustriesOil Surges By Highest Rate in a Year Following OPEC+ Output Cut

Oil Surges By Highest Rate in a Year Following OPEC+ Output Cut

Oil rallied 8% on Monday, signaling its largest price increase over the past year. This came after the Organization of Petroleum Exporting Countries and its allies, including Russia, made an unexpected production cut.

In a move that surprised markets, members of OPEC+ pledged to cut oil production by 1 million barrels per day starting next month. Markets expected the organization to hold output steady, particularly as it comes outside of OPEC+’s regular timetable to review the market’s demand and members’ supplies.

Following the announcement, Goldman Sachs Group Inc. lifted its forecasts for this year and the next while U.S. gasoline futures also surged. In what would typically be a quiet Asian trading session, thousands of futures were purchased.

Peter McNally, global sector lead for energy at Third Bridge, said that “by cutting now, OPEC+ moves to rebalance the market in front of the strongest seasonal period.”

The White House, on the other hand, disagreed with OPEC+’s decision, labeling it as ill-advised. The U.S. government added that it would work with producers and consumers to suppress the rise in gasoline prices.

Euro Steadies as ECB President Promises Further Rate Hikes

The euro remained steady on Thursday after European Central Bank (ECB) President Christine Lagarde announced that further interest rate hikes would be implemented as...

Stocks Rise as House Passes Debt Ceiling Deal

U.S. stocks advanced on Thursday morning after the House of Representatives passed a bill proposing to raise the government's debt ceiling on Wednesday evening....

Macy’s Shares Fall After Annual Forecast Cut

Macy's Inc cut its full-year earnings and profit forecast after experiencing a slowdown in demand for its high-end products. The retailer's shares declined by...