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Oil price rises ahead of weekend output cut

Oil rig vidOil prices have risen ahead of the output cut agreed by major producers which takes effect on Sunday.

Brent crude rose 1.6% on Tuesday to trade at $56.04 a barrel, while US was trading up by the same rate at $53.84.

US crude prices are 25% higher in just over a month, helped by robust economic data and forecasts, and optimism over the first agreement between Opec and non-Opec producers for 15 years.

The deal to reduce production by almost 1.8 million barrels per day starts on 1 January and analysts spoke of a continuing rally over the rest of the shortened trading week.

A committee to monitor the market is expected to meet on 13 January, according to Reuters sources, giving a further boost the the price as this points to a determination by the signatories to fulfil their pledge.


Expectations that Donald Trump will instigate a fiscal boost for the US economy have fuelled forecasts of higher inflation and more growth.

New data also points to consumer confidence in the US at its highest in more than 15 years.


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