Oil prices rise further after Opec agrees output cut
Oil prices have risen further following Wednesday’s agreement by the Opec group of oil producing nations to cut output.
The price of Brent crude rose 3% to $53.43 a barrel, after soaring 8.8% on Wednesday.
The deal, Opec’s first output cut for eight years, is designed to reverse a slump in global oil prices and will see the group reduce production by 1.2 million barrels a day from January.
But analysts have raised doubts about its chances of succeeding.
“Compliance is key and it’s worth noting that Opec members don’t have the best record on that front,” said Neil Wilson of ETX Capital.
The price of US crude has also risen, trading 1.1% higher at $49.99 a barrel after jumping 9% on Wednesday.
“Opec has delivered an agreement,” said Jason Gammel of US investment bank Jefferies. “For the time being, oil prices have received a huge support.”
The output cut follows several years of depressed oil prices due to a supply glut on the market, which has seen prices more than halve since 2014.