OPEC cuts output by about 1.16 million bpd
Oil posts biggest daily rise in nearly a year
Producer group acted after oil hit 70 a barrel
Goldman Sachs raises Brent price forecast to 95 for 2023

LONDON, April 3 Reuters Oil prices surged on Monday, posting their biggest daily rise in nearly a year, after a surprise announcement by OPEC to cut more production jolted markets.

Brent crude was trading at 84.53 a barrel as of 1115 GMT, up 4.64, or 5.8, after touching the highest in a month at 86.44.

West Texas Intermediate crude U.S. was at 80.23 a barrel, up 4.56, or 6, after hitting its highest level since late January.

The Organization of the Petroleum Exporting Countries and their allies including Russia shook markets by announcing further production target cuts of about 1.16 million barrels per day bpd on Sunday.

The group, known as OPEC, had been expected to maintain its earlier decision to cut output by 2 million bpd until December at its monthly meeting on Monday.

The pledges bring the total volume of cuts by OPEC to 3.66 million bpd according to Reuters calculations, equal to 3.7 of global demand.

As a result, Goldman Sachs lowered its end2023 production forecast for OPEC by 1.1 million bpd and raised its Brent price forecasts to 95 and 100 a barrel for 2023 and 2024, respectively, it said in a note.

The Biden administration said the move announced by the producers was unadvisable and some analysts questioned OPEC39;s rationale for the extra production cut….