OPEC+ Makes Shock Million-Barrel Cut in New Inflation Risk
- Saudi leads cartel with its own 500,000 supply reduction
- The White House says the move by OPEC+ is ill-advised
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OPEC+ announced a surprise oil production cut of more than 1 million barrels a day, abandoning previous assurances that it would hold supply steady and posing a new risk for the global economy.
It’s a significant reduction for a market where — despite the recent price fluctuations — supply was looking tight for the latter part of the year. Oil futures soared as much as 8% in New York on Monday while gasoline also gained, adding to inflationary pressures that may force central banks around the world to keep interest rates higher for longer.