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Oil prices soar 5% after first Opec, non-Opec deal since 2001

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Oil prices soared by more than 5 per cent as the session began in Asian trading after Opec and non-Opec producers on Saturday reached their first deal since 2001 to curb oil output jointly and ease a global glut that lasted more than two years.

[NEW YORK] Oil prices soared by more than 5 per cent as the session began in Asian trading after Opec and non-Opec producers on Saturday reached their first deal since 2001 to curb oil output jointly and ease a global glut that lasted more than two years.

Brent futures for February delivery rose US$2.81 to US$57.14 a barrel, a 5.2 per cent gain, by 6:05pm EST (2305 GMT) on Sunday. US crude rose US$2.57 to US$54.07 per barrel, a 5 per cent gain.

On Saturday, producers from outside the 13-country Organization of the Petroleum Exporting Countries agreed to reduce output by 558,000 bpd, short of the initial target of 600,000 bpd but still the largest-ever contribution by non-Opec countries.

Opec had previously agreed to slash output by 1.2 million barrels per day from Jan 1, with top exporter Saudi Arabia cutting as much as 486,000 bpd.

REUTERS

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