Oil jumps on hopes of a new Opec deal
Oil prices rose sharply today on hopes the Opec cartel would strike a long-awaited deal to curb a supply glut that has triggered an energy industry crisis.
The price of oil has halved since mid-2014 due to chronic oversupply, but today’s meeting of the Organisation of the Petroleum Exporting Countries in Vienna could prove a turning point.
Several delegates were confident an agreement to limit output would finally be reached.
Brent crude jumped 2.74 cents, or 6%, to $49.12 a barrel and analysts predicted prices above $50 should a deal materialise.
The move comes despite deep divisions in the group, which accounts for a third of global oil production, and fears a cut would hand market share over to rival producers.
Iran and Iraq are reluctant to participate fully in any restrictions despite pressure coming from Saudi Arabia.
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