Oil prices surge after surprise OPEC move

Oil prices have surged to a three month high following a surprise move by the Organization of the Petroleum Exporting Countries (OPEC) to cut production.

At the group’s meeting on Thursday, OPEC and its allies agreed to reduce crude oil output by an additional 500,000 barrels per day, a move that came as a surprise to many market analysts.

The production cut is the first such move since 2016 and comes amid growing concerns over a global economic slowdown, caused in part by the US-China trade war.

The new agreement to cut production is expected to boost oil prices, which had been under pressure in recent months as rising US oil production threatened to flood the market with crude.

Prices rose on the news, with Brent crude, the global benchmark, hitting a high of $67 per barrel.

Analysts say the move could help support prices in the coming months, as global demand remains weak and gasoline and diesel inventories remain high.

OPEC and its allies, including Russia, have been cutting production since last year to bolster prices, though the group has been reluctant to go beyond its current agreement.

The move has been welcomed by oil producers in the Middle East, who have been hit hard by the global economic slowdown.

“This is a clear sign that OPEC is serious about tackling the supply-demand imbalance,” said Ali al-Naimi, a former Saudi oil minister.

The production cut is expected to be implemented in January, and it remains to be seen whether the group will extend its cuts further.

For now, though, the news has been welcomed by the oil industry and could provide a boost to prices in the coming months.