Crude oil prices surged 5% to $82 per barrel as geopolitical tensions in the Middle East escalated and OPEC+ members signaled their intention to maintain production cuts into next year.
The price spike comes after reports of shipping disruptions in the Red Sea, which handles approximately 12% of global trade. Energy analysts note that any sustained disruption could significantly impact oil supply chains.
OPEC+ confirmed its commitment to production cuts through Q1 2024, with Saudi Arabia extending its voluntary 1 million barrel per day cut. The cartel's next meeting in March will be closely watched.