Non-OPEC production cut sparks crude oil price rise to $56-barrel

The price of Brent crude oil spurted up to a near-18 month high today at $57.89-barrel on the first day of trading in London since non-OPEC oil producers agreed to implement a small cut in production.

Non-Opec countries have agreed to cut their output by 558,000 barrels a day in a deal designed to reduce oversupply and boost prices.

In November, Saudi-led OPEC agreed to cut their supply of oil by 1.2 million barrels a day.

Brent later eased back to close trading in London today at $56.55 – a rise of 4% on the day.

The price of Brent crude needs to float steadily at around $80-barrel – or more – before oil companies start spending on exploration for new North Sea oil.

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