New York

OPEC has never taken supply cuts so seriously, and hedge funds are loving it.

Investor optimism that West Texas Intermediate (WTI) oil prices will rise reached an all-time high as the Organization of Petroleum Exporting Countries delivers on pledges to reduce production. The International Energy Agency (IEA) said the group has achieved a record 90 per cent initial compliance with an output accord. The US benchmark has traded between US$50.71 and US$54.34 since Jan 10 as balancing forces - the Opec curbs and the US shale boom - have kept volatility to a minimum.