Brent oil jumps above US$86 after Russia says it plans output cut

Oil jumped after Russia said it plans to cut March production by 500,000 barrels a day.

Brent crude climbed as much as 2.6 per cent in London to trade above US$86 a barrel, erasing an earlier decline, while West Texas Intermediate moved above US$80 a barrel. The move is the first major indication of an impact on Russian production since a swath of sanctions was placed on the country's output over the last three months. 

Russia's production cut will be voluntary and is a response to western price caps, Deputy Prime Minister Alexander Novak said in a statement. The country is able to sell its oil volumes and it does not want to adhere to price restrictions imposed by western nations.