In an odd transaction between Organization of the Petroleum Exporting Countries (OPEC) members, Saudi Arabia has pledged to cut its oil production while Russia and Kazakhstan will slightly increase production together. Oil prices and futures are already rising in response to the production cuts.

The cuts came as a surprise to a market marred with declining demand and oversupply, providing oil producers and investors with much needed relief as the new year gets underway. The oil-rich Islamic kingdom announced that it would be reducing production by 1 million barrels per day, which will allow Russia and Kazakhstan to increase output by a combined 75,000 barrels per day while still giving the energy market the relief it desperately needs.

The move looks to be a means of satisfying Russia, which has consistently demanded a production increase despite the ailing energy market. Prince Abdulaziz bin Salman, the Arabian Minister of Energy and the fourth son of King Salman bin Abdulaziz, noted that the move was a good-will gesture, and was entirely at Saudi Arabia's discretion. The Prince's move has not only eased the pressure on the market but has likely eased tensions between OPEC+ members as well, helping to keep the organization united as it faces a still uncertain future as the pandemic continues to rage.

The move has been received exceptionally warmly by the market, driving up oil prices and oil futures. Domestic benchmark West Texas Intermediate (USO  ) went up above $50 for the first time since February of last year, while international benchmark Brent Crude (BNO  ) was up to $54 for the first time in the same period. Oil futures surged above $50 as well, while at the same time, UBS Group (UBS  ) raised its price target for Brent Crude to $60. There was some slight price instability amid the violence in the Capitol on Wednesday, but it doesn't seem to have had any lasting effects.