Oil surges above $100 as Gulf states cut back production

Oil prices surged on Monday after Middle East producers cut output amid regional conflict and reports that G7 countries, including the U.S., planned to discuss a coordinated release of crude from strategic reserves. The combination of supply disruptions and potential coordinated reserve releases increases near-term volatility, is supportive for crude prices and upstream energy names, and poses upside risk to inflation and energy-related market moves.

Analysis

Oil prices surged on Monday after Middle East producers cut output amid regional conflict and reports that G7 countries, including the U.S., planned to discuss a coordinated release of crude from strategic reserves. The combination of supply disruptions and potential coordinated reserve releases increases near-term volatility, is supportive for crude prices and upstream energy names, and poses upside risk to inflation and energy-related market moves.