Oil prices rise one per cent as Opec chief reaffirms commitment to output cut later this month

Francesca Washtell
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Oil prices may have risen but are still comfortably below the $50 threshold (Source: Getty)

Oil prices have rallied more than one per cent today after producers' club Opec said it was committed to hashing out an output cut agreement later this month in a bid to curb the global supply glut.

Global benchmark Brent crude lifted 1.25 per cent, or 57 cents, to $46.15 a barrel, while US equivalent West Texas Intermediate crude rose 1.41 per cent, 62 cents, to $44.69 a barrel.

The secretary general of the Organisation of the Petroleum Exporting Countries (Opec), Mohammad Sanusi Barkindo, told reporters at a conference in Abu Dhabi: "We as Opec we remain committed to the Algiers accord that we... put together. All Opec 14... remain committed to the implementation."

Read more: Opec remains positive on output cut as oil crashes to $44

Barkindo has also stressed he will "continue to work with all member countries in collectively protecting and defending the interest of the organisation, as well as develop a structured and sustainable relationship with non-Opec producers", the consortium said in a statement today after he met with the Emir of Kuwait.

At the end of September the organisation reached a provisional agreement to slash output by 700,000 barrels per day, though this will not be finalised until a meeting in Vienna at the end of this month.

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Chances Opec’s squabbling members will be able to reach a deal have appeared to fade since a preliminary agreement was announced.

Oil plunged to $44.19 last week, testing the late-September low, after reports that Saudi Arabia threatened to raise its output.

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