Opec members rejoice

Opec members rejoiceOil price rallies upon production cut Oil prices could rise to $60 a barrel after Opec cut crude oil supplies for the first time in eight years. Oil held its biggest gain in nine months and crude producers rallied after the Organisation of Petroleum Exporting Countries (Opec) approved the first supply cuts in eight years, with focus now shifting to how it will strictly implement its bid to ease a record glut.

Futures added as much as 1.4% in New York and traded above $50 after surging 9.3% Wednesday, the largest gain since February amid record volumes.

Opec agreed to reduce collective production to 32.5 million barrels a day, Iranian oil minister Bijan Namdar Zanganeh said in Vienna on Wednesday. Goldman Sachs Group and Morgan Stanley said prices could rise to $60 a barrel.

FIN24