On Sunday, the OPEC+ oil cartel (which includes OPEC members plus Russia) announced that it would cut daily production by more than 1 million barrels of oil since May and running through the end of the year.

This has been an unexpected news for the market.

The price of crude oil surged on Monday, pushing the quotation of the major oil companies.

Chevron (+4%) and bp (+5%) have taken advantages of this news.

Instead, Valero traded negative today (-1%) due to the increasing costs of crude oil.

Last month, oil price dropped due to high supply and fears over the global economy.

Also, oil price was under pressure due to a surge in the dollar as investor concern rose over the banking crisis.

But as worries over an acute financial crisis worldwide have ebbed, the dollar has eased and WTI rose by nearly $10/barrel over the final two weeks of March.

It is also important to note that a renewed surge in oil prices can potentially complicates the task ahead for the Federal Reserve, which has raised interest rates in a bid to lower inflation.

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