HONG KONG: Oil prices soared almost six per cent in Asian commerce Monday morning after main producers led by Saudi Arabia introduced a shock cut of multiple million barrels per day.
The West Texas Intermediate contract jumped 5.74 per cent to $80.01 a barrel, whereas Brent jumped 5.67 per cent to $84.42.
The transfer by Saudi Arabia, Iraq, UAE, Kuwait, Algeria and Oman shall be in impact from subsequent month till the top of the 12 months, and marks the largest discount in output because the OPEC+ cartel slashed two million barrels per day in October.
The discount got here on prime of a Russian resolution to increase a cut of 500,000 barrels per day, and despite US calls to extend manufacturing.
The announcement will fan recent fears about inflation and put extra strain on central banks to hike rates of interest additional.
Market “sentiment is likely to take a knock… as higher levels of expected inflation assumes higher (for longer) interest rates”, stated Matt Simpson at City Index.
“And stocks likely won’t appreciate this development, so we could be in for a rocky start to the week.”
The West Texas Intermediate contract jumped 5.74 per cent to $80.01 a barrel, whereas Brent jumped 5.67 per cent to $84.42.
The transfer by Saudi Arabia, Iraq, UAE, Kuwait, Algeria and Oman shall be in impact from subsequent month till the top of the 12 months, and marks the largest discount in output because the OPEC+ cartel slashed two million barrels per day in October.
The discount got here on prime of a Russian resolution to increase a cut of 500,000 barrels per day, and despite US calls to extend manufacturing.
The announcement will fan recent fears about inflation and put extra strain on central banks to hike rates of interest additional.
Market “sentiment is likely to take a knock… as higher levels of expected inflation assumes higher (for longer) interest rates”, stated Matt Simpson at City Index.
“And stocks likely won’t appreciate this development, so we could be in for a rocky start to the week.”