Crude oil prices increased as investors expect that the deal between OPEC and non-OPEC countries to reduce output will be able to end the global oversupply.

On the first working day of the new year, Benchmark North Sea Brent crude and US light crude oil gained 40 cents to reach $57.22 per barrel and $54.12 a barrel respectively, reported Reuters.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

In November and December, OPEC and non-OPEC decided to reduce oil production to end the global oil glut.

Excess oil production caused prices to reduce to almost half of its 2014 level.

"The most likely scenario is OPEC and non-OPEC member countries will be committed to the deal, especially in early stages."

The deal between OPEC and non-OPEC has become effective from 1 January. It is expected that the deal would reduce oil production by approximately 1.8 million barrels per day.

See Also:

CMC Markets chief market analyst Ric Spooner was quoted by the news agency as saying: “Markets will be looking for anecdotal evidence for production cuts. The most likely scenario is OPEC and non-OPEC member countries will be committed to the deal, especially in early stages.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, OPEC member Libya reportedly increased its oil production by 85,000bpd in December.  Non-OPEC country Oman is expected to reduce its oil output by 5% from March.

Russia produced 11.21 million bpd in December. The country is a key non-OPEC oil exporting country. It agreed to reduce its output in the coming months by 300,000bpd under the deal.