Oil Rises 2%,
Hits 18-Month Highs as Markets Eye
Output Cuts
December 03,
2016
Oil prices hit 18-month highs on Tuesday,
the first trading day of 2017, buoyed by
hopes that a deal between OPEC and other big
oil exporters to cut production, which
kicked in on Sunday, will drain a global
supply glut.
Benchmark Brent crude jumped more than 2
percent to a high of $55.24, up $1.52 a
barrel and its highest since July 2015. By
1230 GMT, Brent had eased to $58.07, up
$1.25.
U.S. light crude oil hit an 18-month high of
$58.37 up $1.55 a barrel, also its highest
since July 2015, before slipping to around
$54.95.
Oil futures exchanges were closed on Monday
for New Year public holidays.
Jan. 1 marked the official start of a deal
agreed by the Organization of the Petroleum
Exporting Countries and other exporters such
as Russia to reduce output by almost 1.8
million barrels per day (bpd).