OPEC+ unexpectedly announced a decline in oil production.

OPEC+ countries have announced an additional 1.16 million barrels per day cuts in oil production from May 2023 to maintain market stability. The total commitment of OPEC+ countries to reduce production is now 3.66 million barrels per day, which is 3.7% of global demand. The previous drop in oil prices to $70 per barrel was caused by fears that the global banking crisis could hit demand. Cuts in oil production could raise oil prices by $10 a barrel. Some OPEC+ members are already pumping well below agreed levels due to a lack of upstream capacity.