Woodford 'sceptical' over OPEC production cut claims

First output cut for eight years

Neil Woodford is avoiding resource-related stocks as he feels pessimistic about the potential for a cut to oil production, adding demand fundamentals for commodities remain "fragile and deteriorating".

Last month, OPEC agreed to its first cut in output for eight years, suggesting output could fall as low as 32.5m barrels per day. The organisation, which includes countries such as Saudi Arabia and Qatar, pumps 40% of the world's oil.  Following the news, the price of oil jumped 6%, benefitting companies such as Exxon Mobil, BP and Royal Dutch Shell. However, writing in an investor update, Woodford (pictured) said he did not believe an agreement would be reached. He said: "Although the market has recently become excited about the prospect of an agreement by OPEC members to cut oil ...