Dubai: Oil prices rose further following Wednesday’s agreement by Opec to cut output.
The price of Brent crude rose 2.4 per cent to $53.08 a barrel, after soaring 8.8pc 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 rose, trading 1.1pc higher at $49.99 a barrel after jumping 9pc 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.”