Oil powers announce surprise cuts

RIYADH — Major oil powers led by Saudi Arabia announced on Sunday a surprise production cut of more than 1 million barrels per day, calling it a "precautionary" move aimed at stabilizing the market.

The reductions, on top of a Russian decision to extend a cut of 500,000 barrels per day, and despite US calls to increase production, risk stoking inflation and pressure to raise interest rates.

Cuts by Saudi Arabia, Iraq, Kuwait, Algeria, Oman and the United Arab Emirates from May to the end of the year will top 1 million barrels per day — the biggest reduction since the OPEC+ cartel slashed 2 million barrels per day in October.