Oil prices rose by over one per cent yesterday, pushed up by a statement from the producers’ club Opec that it was committed to a deal made in September to cut output in order to prop up the market.

Brent crude was at $46.12 per barrel at 0746 GMT, up 54 cents, or 1.18 per cent, from their previous close.

US West Texas Intermediate (WTI) crude was up 61 cents, or 1.38 per cent, at $44.68 a barrel.

The Secretary-General of the Organisation of the Petroleum Exporting Countries (Opec) said yesterday the group was committed to a deal made in Algiers to cut output.

“We as Opec remain committed to the Algiers accord that we... put together. All Opec 14 remain committed to the implementation,” Mohammed Barkindo told reporters at a conference in Abu Dhabi.

Despite this, many analysts doubt that Opec’s ability to coordinate a cut.

“Scepticism about the ability for Opec to execute on its Algiers agreement is warranted ... [but] Opec can still spook markets with its rhetoric. If prices continue to slip, the chances for bullish Opec headlines grow, which could lift prices briefly even if there is no follow through,” the US bank added.

Barclays bank said there was little to no agreement among producers about who would cut how much.

“Individual country details still remain challenging to agree upon,” Barclays bank said.

“Iraq boosted production while Saudi Arabia asked for exceptions. Russia is still sitting on the sidelines, and none of the non-Opec members consulted thus far has expressed any intention of a cut,” it said.

Yesterday’s price rises come after steep falls last week, when by Friday Brent fell as low as $45.08, its weakest since August 11.

Last week’s losses were the steepest since January, and took nearly 15 per cent off a one-year high hit in the first half of October.

There are also risks that the oil glut, which has dogged markets for over two years, could continue as Opec’s de-facto leader Saudi Arabia threatened to increase production should the upcoming meeting between lead to no result.

Even if Saudi Arabia does not follow through on that threat, its exports could rise.

“Saudi local oil demand is falling, and just maintaining current output could imply higher exports,” Barclays said.

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