Oil rises after Opec agrees to cut output

OIL prices surged after the world’s biggest producers agreed to cut their output by 1.2m barrels a day.

Following crunch talks in Vienna, members of Opec will reduce output by 800,000 barrels per day while Russia and other nations signed up to a 400,000 reduction.

The cuts are scheduled to begin on January 1 and will last for six months.

There has been pressure lately for a cut in production following a sharp fall in prices because major producers, including the US, are pumping out oil at high rates. Brent crude’s price rose by as much as 5.2pc, to $63.17 a barrel.

The cut is likely to anger US President Donald Trump, who on Wednesday tweeted: ‘The world does not want to see, or need, higher oil prices!’