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."
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.
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.