WTI crude oil futures soared as much as 31% on Monday, before easing back to trade more than 22% higher around $113 per barrel, amid a series of production cuts from major Middle Eastern producers following disruptions in the Strait of Hormuz. The jump represents the largest one-day gain since April 2020 and the highest price level since June 2022, building on last week’s 35.6% rally. In Iraq, production from its three main southern oilfields has fallen by 70% to 1.3 million bpd from 4.3 million before the conflict, according to industry officials. Kuwait, OPEC’s fifth-largest producer, also began reducing output on Saturday and has declared force majeure. These followed LNG production cuts from Qatar last week, further tightening global supply. Analysts also anticipate potential output reductions from the UAE and Saudi Arabia as their oil storage capacities near maximum levels. Meanwhile, Iran has appointed the son of the late Ayatollah Ali Khamenei as its new Supreme Leader.
