Oil prices jumped this morning after OPEC+ announced yesterday they would cut production by more than 1 million barrels per day starting next month. From July, there will be about 1.6 million barrels less supply also due to the extension of Russia's existing supply reduction. As a response, Brent price briefly visited USD 86/bbl level this morning before retreating to just below USD 84/bbl. Just as markets were rejoicing at the lower headline inflation pressures on Friday, higher oil prices will now drive stronger inflationary pressures in the short term. The surprise move could also trigger renewed tensions between the US and Saudi governments.