Opec cuts prompt record bets on oil price rise

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.