WTI (West Texas Intermediate) crude futures held above $80 per barrel on Tuesday after surging more than 6% in the previous session, underpinned by a surprise production cut of more than 1 million barrels per day from OPEC+. Investors also remain optimistic about the outlook for Chinese demand, as the country's economic recovery is expected to help cushion the impact of slower global growth. Meanwhile, market watchers are gauging the effect of the latest output cuts on Federal Reserve monetary policy, amid concerns that the central bank may need to tighten policy further to keep inflation under control. Elsewhere, an initial agreement has been reached to resume oil exports through Ceyhan this week, after a dispute involving Kurdish authorities halted exports of around 400,000 barrels a day from the Turkish port last week.

2. Was the market's reaction to the announcement of a production cut what you would have expected?
4. How might the re-opening of an oil export port have affected the market's reaction?
6. Do you believe the OPEC production cut would affect the interest rate and inflation outlook? Explain using the short- and medium-run model