Oil Prices Soar after OPEC Output Cut Deal, Brent at 16-Month High

تم نشره في Thu 1 December / Dec 2016. 01:00 AM
  • An oil rig lights up Cape Town harbour as the sun sets August 6, 2011. - (REUTERS)

NEW YORK — Oil prices rose an additional 4 per cent, at least, on Thursday, with Brent crude at its highest in about 16 months, extending gains after OPEC and Russia agreed to restrict output to speed up the rebalancing of a long-oversupplied market.

Benchmark Brent futures for February delivery jumped as much as 4.8 per cent to USD54.36 a barrel, the highest since July 30, 2015. By 11:43 a.m. EST, Brent was up USD2.21, or 4.3 per cent, at USD54.05.

US crude rose USD1.98, or 4 per cent, to USD51.42, after rising to a high of USD51.72 a barrel, about 20 cents below its 2016 high.

The Organization of the Petroleum Exporting Countries agreed on Wednesday its first oil output reduction since 2008 after de-facto leader Saudi Arabia accepted "a big hit" and dropped a demand that arch-rival Iran also slash output.

The deal also included the group's first coordinated action with non-OPEC member Russia in 15 years. On Thursday, Azerbaijan said it was also willing to engage in talks on cuts.