Oil prices soar as producers unveil shock output cut

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Oil prices soar as producers unveil shock output cut
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The decision by the OPEC+ cartel fanned concerns about a fresh spike in prices that could put pressure on central banks to push interest rates higher.

HONG KONG - Oil prices soared Monday after top producers unveiled a shock output cut of more than a million barrels per day, while equities mostly rose after data showed US and European inflation eased further last month.

It came on top of a Russian decision to extend a cut of 500,000 barrels per day, and in spite of US calls to increase production. "The production cut, coming at a time of an uncertain global demand environment clearly shows OPEC was not happy with the movement in the oil price which had fallen over recent months," said National Australia Bank's Tapas Strickland.

Still, the mood on Asian trading floors was upbeat, with most markets tracking a strong rally on Wall Street in response to news that US and eurozone price rises had slowed further.

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