OPEC Deal Yielding Results as Oil Price Hits 18-Month High at $58.37

Oil prices hit 18-month highs yesterday, the first trading day of 2017, buoyed by hopes that a deal between Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC members to cut production, which kicked in on Sunday, will drain a global supply glut.

Benchmark Brent sweet crude jumped more than two per cent to a high of 58.37 dollars, up 1.55 dollars a barrel, the highest since July 2015.

U.S. light crude oil hit an 18-month high of 55.24 dollars up 1.52 dollars a barrel, also its highest since July 2015.

January 1, 2016, marked the official start of a deal agreed by OPEC and other non-OPEC exporters such as Russia to reduce output by almost 1.8 million barrels per day (bpd).