Oil prices reached $55 after OPEC members agreed to cut production last week. This is the highest price in the last sixteen months.

Brent crude oil futures LCOc1 rose to $55.20 per barrel, while WTI crude oil CLc1 jumped by 54 cents to touch $52.22 per barrel, reported Reuters.

Commerzbank analyst Carsten Fritsch was quoted by the news agency as saying: “It seems that any dip is seen as a buying opportunity.”

"It seems that any dip is seen as a buying opportunity."

This week, OPEC countries are scheduled to meet non-OPEC nations in Vienna to finalise the limit on oil production.

In the last week's meeting, OPEC members agreed to reduce oil production by 1.2 million barrels per day.

It is also  important to recognise the role of US shale drillers, as their decision is important in maintaining a balance in the global oil market.

Baker Hughes data indicates that energy firms in the US increased their production from oil drilling for the seventh month last week.