Oil in Global Economy Series: Oil price jump as OPEC+ reaches agreement on production cuts

Oil price jumped more than 4 percent as OPEC countries reached an agreement to reduce global oil supplies by 1.2 million barrels per day along with non-OPEC countries led by Russia. According to initial reporting, Iran has been granted exemption from the new round of cuts as it struggles with oil exports amid U.S. sanctions.

According to the deal, all countries would bear 3 percent production cuts excluding Venezuela, Iran, and Libya.

Though giving up some of the post news gains, but WTI is up by 3.8 percent from the day, trading at $53.4 per barrel and global benchmark Brent is trading at $9.1 per barrel premium to WTI.