Oil prices spike after an unexpected OPEC action.

Saudi Arabia and other oil producing countries have announced further oil output cuts, pushing the prices of crude up by as much as 6% in early Monday trading. The oil producers, who control roughly 50% of global oil supplies, reached a decision to reduce their output starting from May until the end of 2023, in a move designed to stabilize the markets. Russia already voluntarily cut oil output by 500,000 bpd back in March, in retaliation for an oil price cap introduced by the West. Moscow believes the move will contribute to the stabilization of crude oil prices, which fell sharply on concerns that the Western banking crisis could weaken global energy demand. Last month, Saudi Energy Minister Prince Abdulaziz bin Salman warned Western states against capping the price of crude oil supplied by the kingdom, adding that any attempts to impose a ceiling would be met with a halt of sales and production cuts. The move left Washington disappointed, as it comes in defiance of US pressure on oil producers to increase their production and lower the prices.