Such actions as Saudi Arabia's cut in oil output in March [by around 800,000 barrels from February due to weak demand], confirmed Sunday by oil minister Ali al-Naimi, could result in a price spike, says a JPMorgan note. 
Lackluster demand for Saudi crude is a result of regional factors such as refinery maintenance and Japanese outages, says the bank; it does not reflect the global situation, and will result in increased tightness as refineries begin to come back online going into summer. 
"If supplies are not increased decisively for June liftings, be prepared for price spikes over $130/bbl," it adds. ICE June Brent down $1.41, or 1.1%, at $122.04/bbl. Nymex May light, sweet crude down $1.92, or 1.7%, at $107.74/bbl.