Oil prices surge after surprise move to cut output
Oil prices have surged after several of the world's largest exporters announced surprise cuts in production, BBC reports.
The price of Brent crude oil is trading above $84 a barrel after jumping by more than 5%.
The increase came 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.
Energy giants BP and Shell saw their share prices rise on Monday, with both rising more than 4%.
Oil prices soared when Russia invaded Ukraine, but are now back at levels seen before the conflict began.
However, the US has been calling for producers to increase output in order to push energy prices lower.
High energy and fuel prices last year helped to drive up inflation - the rate at which prices rise - putting pressure on many households' finances.
The reduction in output is being made by members of the Opec+ oil producers. The group accounts for about 40% of all the world's crude oil output.
Saudi Arabia is reducing output by 500,000 barrels per day and Iraq by 211,000. The UAE, Kuwait, Algeria and Oman are also making cuts.
