Oil prices rise 4 percent as non-OPEC countries also agree to cut back production

Date: 
Monday, December 12, 2016 - 16:15

Oil prices have surged to a 17-month high after a non-OPEC countries agreed to further cutbacks in production.

The weekend agreement between Opec and a number of non-Opec members, notably Russia, has pushed Brent crude up more than 4% to $56.64 a barrel, its highest level since mid-July 2015.

West Texas Intermediate, the US benchmark, is up 4.4% at $53.78.

The move follows an agreement last month by OPEC to cut production by 1.2m barrels a day from 1 January next year, following weeks of wrangling.

On Saturday, producers from outside OPEC agreed to reduce output by 558,000 barrels a day to help end the supply glut which has sent oil prices tumbling.

Although less than the targeted 600,000 barrels it was the largest ever contribution to production cuts by non-OPEC members.

Trinidad and Tobago was represented at the meeting but there has been no indication as yet on what, if any, cutbacks T&T will make.

Oil production in T&T currently hovers around 60,00 barrels a day.

Speaking in Parliament last week, Prime Minister Dr Keith Rowley had allayed fears that T&T would be forced to make any major cutbacks if at all, although he said this country has agreed to the invitation to attend the meeting.

Despite the prospect of US shale producers continuing to raise their own output levels, analysts believe the oil price has further to climb.

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