Oil prices jumped in early trade on Monday, as the 23-nation OPEC alliance considers cutting output by more than 1 million barrels a day for its biggest reduction since the pandemic.
According to Bloomberg, if the coalition agrees to cut production by this amount, it will be the largest reduction since the start of the Covid-19 pandemic, though OPEC + delegates said that the final decision on the size of the cuts will not be made until the ministers meet in Vienna on Wednesday.
If approved, the larger-than-expected cut would reflect concern that the global economy is slowing rapidly as a result of the tight monetary policies adopted by most major central banks, in addition to the price impact of a strong dollar.
Brent crude, the global benchmark for two-thirds of all oil, was up 2.76 percent at $87.49 a barrel, while West Texas Intermediate, the benchmark for US crude, was up 2.82 percent at $81.73 a barrel.
