Oil prices soared as much as 8% on the open after OPEC+ announced it was slashing output by 1.16 million barrels per day.
Analysts led by Daan Struyven from Goldman Sachs said the surprise cut is "consistent" with OPEC+'s doctrine to act preemptively.as traders feared the banking rout could dent global economic growth."They're looking into the second half of this year and deciding they don't want to relive 2008," said Bob McNally, president of Rapidan Energy Group, citing oil prices crashing from $140 to $35 in six months in that year.
McNally added that while it's not his base case, oil prices could "make a dash for $100 … if Chinese demand goes back to 16 million barrels a day second half of this year [and] if Russian supply starts to go off because of sanctions and so forth."
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