Oil prices increase as global producers agree to cut output

New York, Dec 13 (IANS) Oil prices increased on Monday after oil producers outside the Organisation of the Petroleum Exporting Countries (OPEC) agreed to reduce output.

Non-OPEC oil producers, led by Russia, agreed on Saturday to reduce crude output by 558,000 barrels per day (bpd), short of the target of 600,000 bpd. It is the first time since 2001 that OPEC and some of its rivals reached a deal to jointly reduce output in order to tackle global oil glut, Xinhua news reported.

Analysts said the market might see an under-supply of crude starting next year. The oil price will most likely stay in the $53-to-57 range.

The West Texas Intermediate for January Delivery increased $1.33 to settle at $52.83 a barrel on the New York Mercantile Exchange, while Brent crude for February delivery added $1.36 to close at $55.69 a barrel on the London ICE Futures Exchange.