Sonangol, a state oil company in Angola says in a statement Yesterday, its has cut output by 78,000 barrels per day to (bpd) to 1.673 million bpd as part of an OPEC agreement to lower supply from 1st, January.
Opec’s deal, first output cut for eight years, is designed to reverse a slump in global oil prices and will see the group reduce production by 1.2 million barrels a day from January. But analysts have raised doubts about its chances of succeeding.
"Compliance is key and it’s worth noting that Opec members don’t have the best record on that front,” said Neil Wilson of ETX Capital.
The price of Brent crude rose 4.5% to $54.19 per barrel, its highest level this year, after soaring 8.8% and the price of US crude has also risen, trading 4.3% higher at $51.54 a barrel after jumping 9% on Wednesday.