OPEC+ announced a surprise cut in oil production by more than 1 million barrels a day, defying previous assurances that it would keep supply constant.
This is a significant reduction for a market where, despite recent price fluctuations, supply seemed tight for the latter part of the year.
Oil futures climbed as much as 8% in New York on Monday, fueling fears of inflationary pressures and still tighter monetary policy from central banks.
Saudi Arabia announced a supply reduction of 500,000 barrels per day. Other members including Kuwait, the United Arab Emirates and Algeria have followed suit, while Russia has said that the planned production cut in late June will be extended until the end of 2023.
Oil prices rallied, with Wti (+5.4%) at 79.7 dollars and Brent (+5.5%) at 84.3 dollars a barrel.