Oil prices have begun to skyrocket from this Monday morning after Saudi-led OPEC+ announced a surprise cut in production.
OPEC+ Saudi Arabia
International oil benchmark Brent crude rose as much as 8.4% to a high of $86.44 a barrel.
Oil prices soared almost six per cent this morning after major producers led by Saudi Arabia indicated plans to cut of more than one million barrels per day.
The West Texas Intermediate contract jumped 5.74 per cent to $80.01 a barrel, while Brent jumped 5.67 per cent to $84.42.
The move will take effect from next month and will be the biggest reduction in output since the Opec+ Cartel slashed two million barrels per day since October last year.
The slash by Saudi Arabia, Iraq, UAE, Kuwait, Algeria and Oman will be in effect from next month until the end of the year.
The reduction came on the heels of a Russian decision to extend a cut of 500,000 barrels per day and in spite of US calls to increase production.