Brent soars above $52 after Opec deal
SINGAPORE, December 1, 2016
Oil prices soared today following a decision by Organization of the Petroleum Exporting Countries and Russia to cut output in a bid to boost oil price.
US crude oil gained 9 percent to reach $50 a barrel for the first time since late October, while Brent crude touched a six-week peak of $52.35 a barrel.
The Opec agreed its first supply cut in eight years yesterday, after more than two years of depressed oil prices.
Members of the oil group will start a cut of 1.2 million barrels a day from January, Mohammed Bin Saleh Al-Sada, Opec's president, said.
Oil prices have more than halved since 2014 due to a supply glut.
Non-Opec countries, including Russia, will also reduce production by 600,000 barrels a day, according to Al-Sada.
Russia has agreed to cut 300,000 barrels from its output of more than 10 million barrels a day, Reuters quoted Al-Sada as saying.
Brent is off the 12-year low of $27 per barrel marked in January but still less than half of where they were in 2014.