Oil price jump after pioneering oil cuts deal

SiberianPump jacks are seen at the Lukoil company owned Imilorskoye oil field outside the west Siberian city of Kogalym, Russia,PhotoREUTERS/Sergei Karpukhin

The price of oil rose after eleven oil countries, outside OPEC, agreed to cut oil production by 1.76 million barrels per day from January.

In the morning hours on Monday, North Sea oil sold for $ 57.17 a barrel, while US light crude rose to $ 54.32 a barrel. It is the highest price level since July 2015.

The aim of the oil cut agreement, which was reached at a meeting in Vienna where both OPEC members and other oil countries took part, is to get the price of oil to increase.

The agreement applies to the first half of 2017 and may be extended by another six months if necessary.

OPEC members in late November agreed to cut oil production by 1.2 million to 32.5 million barrels for a few days of the year.

 

Source: NTB scanpix / Norway Today

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