# Oil prices surge after surprise move to cut output

> Saudi Arabia, Iraq and several Gulf states announced surprise output cuts of more than one million barrels per day, and Russia extended its half-million barrel cut through year end. Brent rose almost 6% to near $85 a barrel, lifting energy company shares.

- Date: 2023-04-02 · published 2023-04-02T12:00:00.000Z
- Category: policy · region Global · magnitude high
- Page: https://feedsoft.ai/events/7947-oil-prices-surge-after-surprise-move-to-cut-output
- Commodities: [Potash (KCl)](https://feedsoft.ai/c/POTASH.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Urea](https://feedsoft.ai/c/UREA.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md), [DAP](https://feedsoft.ai/c/DAP.md)

## Why it matters

The cuts remove significant barrels from global supply, pushing up crude and diesel costs that raise feed milling and transport expenses. Higher energy costs also tend to support biofuel-linked demand for vegetable oils.

## Read by commodity

- DAP: bearish ▼
- WTI: bullish ▲
- UREA: bearish ▼
- BRENT: bullish ▲
- DIESEL: bullish ▲
- POTASH: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2023-04-03 | 1 | +8.4% | 4.0 | Details the surprise Gulf output cuts and Russia's extension, the supply catalyst behind Brent's jump toward $85. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2019-11-21 | [Oil Prices Surge as OPEC Looks to Cut Output \| INN](https://feedsoft.ai/events/56233-oil-prices-surge-as-opec-looks-to-cut-output-inn.md) | +2.2% | +7.8% |
| WTI | 2023-05-01 | [OPEC+ announces surprise oil output cuts](https://feedsoft.ai/events/36320-opec-announces-surprise-oil-output-cuts.md) | -7.1% | -5.6% |
| WTI | 2023-04-03 | [Oil prices notch biggest gain in nearly a year after OPEC's surprise output cut](https://feedsoft.ai/events/7951-oil-prices-notch-biggest-gain-in-nearly-a-year-after-opec-s-surprise-output-cut.md) | +5.4% | -0.0% |
| WTI | 2022-08-26 | [Oil prices rise on signals OPEC might cut output](https://feedsoft.ai/events/40228-oil-prices-rise-on-signals-opec-might-cut-output.md) | -6.6% | -15.2% |
| WTI | 2023-04-03 | [Oil Prices Jump After Surprise OPEC Production Cut - The New York Times](https://feedsoft.ai/events/7948-oil-prices-jump-after-surprise-opec-production-cut-the-new-york-times.md) | +5.4% | -0.0% |
| UREA | 2024-04-24 | [Global fertiliser prices set to drop but gas risks cause concern \| Farm Online \| ACT](https://feedsoft.ai/events/5022-global-fertiliser-prices-set-to-drop-but-gas-risks-cause-concern-farm-online-act.md) | -0.7% | -6.4% |
| UREA | 2022-10-03 | [U.N. pushes for global fertilizer price cut to avoid 'future crisis' \| Reuters](https://feedsoft.ai/events/39049-u-n-pushes-for-global-fertilizer-price-cut-to-avoid-future-crisis-reuters.md) | +2.0% | -12.6% |
| UREA | 2026-09-02 | [A surprising twist to India's surging subsidy bill - CNBC TV18](https://feedsoft.ai/events/17789-a-surprising-twist-to-india-s-surging-subsidy-bill-cnbc-tv18.md) | +1.9% | +3.4% |

## Sources

- dailynewnation.com: https://dailynewnation.com/news/562106
- bbc.com: https://www.bbc.com/news/business-65157555

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.