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MTECHTIPS:-Oil prices hit 18-month highs with output cut deal in focus

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MTECHTIPS:-Oil prices hit 18-month highs with output cut deal in focus

 

MTECHTIPS- Oil prices climbed to 18-month highs on the first trading day of 2017 on Tuesday amid hopes that an agreement between major producers to cut production will be effective in reducing a global supply glut and re balancing markets. Brent crude was trading up $1.33, or 2.34% at $58.15 a barrel at 08.10 Eastern Time, the highest level since July 2015. Oil markets were closed on Monday after the New Year’s holiday. U.S. crude oil was $1.3, or 2.42% at $55.02, also it’s highest since July 2015. January 1 marked the official start of the deal agreed by the Organization of Petroleum Exporting Countries and non-OPEC members in November to slash output by almost 1.8 million barrels per day.

Market analysts have said January will serve as an indicator of whether the agreement will be carried out

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