OPEC Cuts , Put Oil Prices , on Track to Make Big Gains.<br />CNBC reports that oil prices are set to see their <br />biggest gain in almost a year since OPEC announced <br />it would cut output by 1.6 million barrels per day.<br />Following the announcement, <br />brent crude futures rose 6.15% <br />to reach $84.80 a barrel.<br />Meanwhile, U.S. West Texas <br />Intermediate crude futures jumped <br />6.25% to reach $80.40 per barrel.<br />CNBC reports that the OPEC cuts <br />will begin in May and run <br />until the end of 2023. .<br />Saudi Arabia reportedly called the decision <br />a "precautionary measure" aimed at <br />stabilizing the volatile oil market.<br />The news comes after Russia <br />announced that it would cut oil <br />production by 500,000 barrels per day. .<br />CNBC reports that other oil producers <br />have also vowed to cut production, <br />including the UAE, Kuwait, Oman and Iraq. .<br />The selected involvement of the largest <br />OPEC+ members suggest that adherence <br />to production cuts may be stronger <br />than has been the case in the past, Vivek Dhar, Commonwealth Bank of Australia, via CNBC.<br />CNBC reports that some experts have suggested <br />that the latest cuts may have a more significant <br />impact that similar cuts made in 2022.<br />Most of the cuts will be made by countries <br />that are producing at or above quotas, <br />which implies a higher share of <br />the announced cuts will translate into real <br />supply reductions than in October 2022, Amrita Sen, Energy Aspects’ founder, via CNBC
