Monday saw a surge in oil prices following an unexpected announcement by Saudi Arabia and other OPEC+ oil producers to reduce output. This decision, which came just days after a slowdown in U.S. price data had raised optimism in the market, has raised concerns about the potential impact on global inflation. Brent oil futures jumped by nearly $6 to $85.54 per barrel, while U.S. crude climbed $5.22 to $80.89.

The announcement was made one day ahead of a virtual meeting of an OPEC+ ministerial panel, which was expected to maintain the 2 million bpd of cuts already in place until the end of 2023.

The head of investment firm Pickering Energy Partners believes that these additional cuts could result in a $10-per-barrel increase in oil prices. Goldman Sachs raised its forecast for Brent to $95 a barrel by year-end and $100 for 2024.