Crude oil futures ended sharply higher on Monday after the Organization of the Petroleum Exporting Countries and allies including Russia’s (OPEC+’s) announcement of plans to lower output targets by a further 1.16 million barrels per day (bpd). Saudi officials claimed the unexpected cut was a 'precautionary measure aimed at supporting the stability of the oil market. The latest pledges bring the total volume of cuts by OPEC+ to 3.66 million bpd including a 2 million barrel cut last October.
Benchmark crude oil futures for May delivery rose $4.75 or nearly 6.3 percent to settle at $80.42 a barrel on the New York Mercantile Exchange. Brent crude for June delivery surged $5.05 or 6.3 percent to settle at $84.93 (Provisional) a barrel on London's Intercontinental Exchange.