Brent crude futures jumped 3%

Brent crude futures jumped almost 3% to around $87 per barrel after Russia announced its plans to cut output by 500,000 barrels a day in March. 

The unexpected move is a retaliation against the European ban on seaborne imports and price caps for Russian oil products, causing a wave of volatility in oil markets. 

The international oil benchmark is now up almost 8% this week, as concerns about tight global supplies come at a time when demand is likely to rebound. Earlier this week, a crucial oil terminal in Turkey suspended operations due to the recent earthquake, while a key oil field in Norway unexpectedly shut down. Meantime, Saudi Arabia, the world's top exporter, raised crude prices for Asian markets for the first time in six months in the latest signal that demand could be poised to bounce on the likelihood of higher imports from China.