Brent jumps 5 as OPEC announces supply cuts
Nikkei edges up, but U.S. stock futures slip
Dollar gains, markets see more chance of May Fed hike

SYDNEYLONDON, April 3 Reuters Oil prices surged on Monday after Saudi Arabia and other OPEC producers announced a surprise cut in their output target, a move that rippled through stock markets and boosted the dollar due to reinvigorated fears about the stickiness of global inflation.

Brent oil futures looked set for its biggest daily percentage gain in around a year, jumping 5.3 to 84.12 a barrel on news OPEC would aim to cut output by around 1.16 million barrels per day. U.S. crude climbed 5.75 to 79.99.

Goldman Sachs lifted its forecast for Brent to 95 a barrel by the end of the year and to 100 for 2024 following the oil output change, which was announced on Sunday, a day before a virtual meeting of an OPEC ministerial panel including Saudi Arabia and Russia.

I think the alliance wants to make sure that oil surplusses don39;t extend into the second half of 2023, as they know that most of the economic weakness is going to come then, said Samy Chaar, chief economist at Lombard Odier.

It39;s simply indicative of the global economy slowing, which is not necessarily bad news as it39;s mainly a selfinflicted slowdown caused by the U.S. and Europe to make sure that inflation is brought closer to target.

Central banks have raised interest rates rapidly in the past year in an effort to bring rampant inflation under control….