Oil prices surge after surprise move to cut output

BBC reported that oil prices have surged after several of the world’s largest exporters announced surprise cuts in production.

The price of Brent crude oil is trading close to $85 a barrel after jumping by almost 6%.vEconomists warned that higher oil prices could make it harder to bring down the cost of living. But the RAC motoring group said it does not expect petrol prices to rise unless the higher oil price is sustained over several days.

Brent crude prices rose after Saudi Arabia, Iraq and several Gulf states said on Sunday they were cutting output by more than one million barrels of oil a day. In addition, Russia said it will extend its cut of half a million barrels per day until the end of the year.