Oil rose sharply in Price

Global oil prices rose after several leading producers, led by Saudi Arabia, surprisingly announced production cuts, AFP reported.

Crude futures rose nearly eight percent, a day after several OPEC+ members unexpectedly announced production cuts totaling more than one million barrels per day.

The shock reduction will begin in May and continue until the end of the year. It involves Algeria, Gabon, Iraq, Kazakhstan, Kuwait, Oman, Saudi Arabia and the United Arab Emirates.

This is in addition to the decision by Russia - also an OPEC+ member - to extend the cut by 500,000 barrels per day.

The oil cartel already angered Washington in October when it cut production by two million barrels a day.

The White House then accused OPEC+ of "colluding with Russia." The US said the cuts would boost Moscow's revenue and undermine Western sanctions imposed over its invasion of Ukraine.

BGNES recalls that Russia's war against Ukraine led to a sharp rise in energy prices last year, fueling high inflation around the world, but since then crude oil prices have been falling.

OPEC+ said yesterday's move was a "precautionary measure aimed at supporting the stability of the oil market".

The Kremlin also defended the decision and said it was "in the interest of global energy markets that global oil prices remain at a good level."

"Whether other countries are satisfied with this or not is their business," Kremlin spokesman Dmitry Peskov told reporters.

Restoration of geopolitical tension

Yesterday's decision is "actually" intended to raise prices, but it could also have a political impact, said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.