A barrel of Brent crude climbed close to $58 overnight, its highest level since July 2015, before edging back to just under $57.
Non-Opec nations agree cut
Oil price soars after landmark deal to cut supply
Oil prices have surged by more than 6% after producers reached their first deal since 2001 to slash output.
The rise was predicted after 11 producing nations who are not members of the Opec group, agreed to cut their output at the weekend.
Opec, the 13-producer cartel led by Saudi Arabia, has already agreed a cut of 1.2 million barrels a day to combat the global glut in oil.
Now the non-Opec members, which include Russia, said their supplies will fall by 558,000 barrels per day.
It is the first time in 15 years that a global agreement has been reached.
The moves by the two dominant groups come after prices nosedived from their $115 a barrel peak in the summer of 2014. Saudi Arabia raised output in an attempt to drive higher-cost producers such as US shale firms out of the market.
The price dipped to below $30 in January.
Among the non-Opec countries attending this weekend’s meeting were Azerbaijan, Bahrain, Malaysia, Mexico, Oman, South Sudan and Sudan.
There is some concern that the agreement from the non-Opec countries could be window dressing.
Analysts question whether they are attempting to present a natural decline in output as their contribution to the deal.
However, Saudi Energy Minister Khalid al-Falih called the deal “historic”. Speaking at a news conference, he said: “This agreement cements and prepares us for long-term cooperation.”
Russia will contribute 300,000 of the non-Opec barrel cut. Energy Minister Alexander Novak told the same briefing: “Today’s deal will speed up the oil market stabilisation, reduce volatility, attract new investments.
