Saudi Arabia-led oil cartel OPEC+ just slashed its crude output – and that’s stoked inflation fears. Here’s what you need to know.

Saudi Arabia-led oil cartel OPEC+ just slashed its crude output – and that’s stoked inflation fears. Here’s what you need to know.

OPEC+ members said Sunday that they'd slash their oil output by more than 1 million barrels a day.

Crude futures jumped as much as 8% on the unexpected announcement, reigniting inflation fears.

Here's everything you need to know about the cartel's surprise production cuts.

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The Organization of Petroleum Exporting Countries and its allies, together known as the OPEC+, slashed their oil output in a shock decision on Sunday, sending crude prices rallying and igniting fears of a global inflation rebound.

Analysts are already warning that the cartel's latest move could have knock-on effects across the world economy.

Here's everything you need to know.

What happened?

OPEC+ is a loose group of oil-producing countries who coordinate on voluntary supply changes.

Saudi Arabia – widely seen as the cartel's de facto leader – said Sunday that it plans to cut its oil output by 500,000 barrels a day from May until the end of the year, according to the state-owned Saudi Press Agency.

Riyadh said the move was "a precautionary measure aimed at supporting the stability of the oil market", with crude benchmarks slipping steadily lower since October