After the Organization of the Petroleum Exporting Countries and their allies including Russia (OPEC+) shocked the markets by announcing further production cuts of about 1.16 million barrels per day, oil prices increased, making the highest daily rise in nearly a year.

Brent crude was trading at $84.22 a barrel by 0900 GMT, up $4.33, or 5.4%, after touching the highest in a month at $86.44 earlier in the session.

U.S. West Texas Intermediate crude was at $79.84 a barrel, up $4.17, or 5.5%, after earlier hitting the highest level since late January.

OPEC+, had been expected to maintain its earlier decision to cut output by 2 million barrels per day until December at its monthly meeting on Monday.

OPEC’s total volume of cuts will reach 3.66 million barrels per day, which is equal to 3.7% of global demand, Reuters calculations.

As a result, Goldman Sachs lowered its end-2023 production forecast for OPEC+ by 1.1 million bbl/d and raised its Brent price forecasts to $95 and $100 a barrel for 2023 and 2024, respectively, it said in a note.

Goldman Sachs lowered OPEC+’s end-year expectations to 1.1 million barrels per day and raised its Brent price forecasts to $95 and $100 a barrel for 2023 and 2024, respectively,

This surprising move by the producers was unadvisable and some analysts questioned OPEC+’s rationale for the extra production cut, according to Biden’s administration.

“It’s hard to buy the ‘pre-emptive’ and ‘precautionary’ reasoning – especially now, when the banking crisis had tailed off and Brent had crawled back up towards $80 from its 15-month lows earlier in March,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.

This step may indicate that OPEC+ economic storm clouds on the horizon, Jorge Leon, senior vice president at consultancy Rystad Energy, said.