Oil price jumps as producers finally agree deal to reduce output

First deal since 2001

The price of oil shot to its highest level in over a year, as both OPEC and non-OPEC producers reached a deal on Saturday to tighten supply after 12 months of negotiations.

Brent crude and US West Texas Intermediate (WTI) crude rose to $57.9 and $54.5 per barrel respectively in overnight trading between Sunday and Monday; the highest levels since July last year. Meanwhile, futures rose by as much as 5.8% in New York and 6.6% in London, as Saudi Arabia, the world's largest crude exporter, said it was ready to cut output to reduce global oversupply, signing the deal alongside other OPEC countries including Iran, Kuwait and the UAE. The organisation intends to reduce output by 1.2m barrels per day from 1 January, with Saudi Arabia cutting by around 486,000 ...