Crude oil prices jumped 6.3% on Monday after Saudi Arabia and other OPEC+ producers announced unexpected oil output cuts of around 1.16 million barrels per day on Sunday.

Investors worry that high inflation numbers could lead to interest rate hikes by the central banks.

US stocks

The S&P 500 climbed 0.4% at 4,124.51, lifted by energy stocks. The S&P 500 energy index gained 4.9%. 

The news of crude oil production cut sparked rally in energy stocks. Chevron Corp, Exxon Mobil Corp and Occidental Petroleum Corp jumped over 4%.

The Nasdaq slipped 0.3% at 12,189.45. The Dow Jones Industrial Average surged 1% at 33,601.15.

Tesla Inc dropped 6.1% after disappointing numbers on its electric vehicle deliveries for the first quarter.

Crude futures were up almost 8% at one stage.  Brent crude for June delivery rose $5.04 to $84.93 a barrel. The benchmark US crude oil for May delivery added $4.75 to $80.42 a barrel.

The move was a “precautionary measure aimed at supporting the stability of the oil market”, the OPEC said in a statement on Monday. The reduction will start in May and last until the end of 2023.

The jump in oil prices has increased the fears of higher inflation. In the past year, the central banks worldwide have hiked interest rates to bring down the inflation.

Canada

Canada’s stock index rose on Monday, led by energy shares after a rise in oil prices. The Toronto Stock Exchange’s S&P/TSX composite index gained 0.9% at 20,278.28.

European stocks

European stocks were mixed on Monday, while UK shares rallied as oil giants jumped on higher crude prices.

The pan-European STOXX 600 index ended flat.

Britain’s FTSE 100 rose 0.5% at 7,673.00. France’s CAC 40 added 0.3% at 7,345.96. Germany’s DAX fell 0.3% at 15,580.92.

Asian shares

Share markets in Asia were mixed on Monday, with MSCI’s broadest index of Asia Pacific shares, outside Japan, closing flat.

Hong Kong’s Hang Seng index finished flat at 20,409.18. In China, Shanghai Composite index gained 0.7% at 3,296.40.

Japan’s Nikkei 225 rose 0.5% at 28,188.55. 

Australia’s S&P/ASX 200 index ended 0.6% higher at 7,223.00. South Korea’s benchmark Kospi fell 0.18% at 2,472.34.

Bullion

Gold for June delivery surged $14.20 at $2,000.40 an ounce. Silver for May delivery fell 14 cents to $24.02 an ounce.