Investing.com - The price of oil rose by as much as 6.5% on Monday, an18-mon th high, after OPEC and a few of its market rivals reached their first deal since 2001 to reduce output across the globe.
The price of crude oil on NYMEX settled today at $52.47, an increase of 97 cents per barrel, or 1.88%.
The price of Brent Oil settled on Monday at $55.33, an increase of $1.00 per barrel, or 1.84%.
Producers agreed to reduce output by 558,000 barrels per day, short of the target of 600,000 bpd but still the largest non-OPEC production cut .
This deal followed OPEC's Nov. 30 pact to cut output by 1.2 million bpd for six months from Jan. 1. Saudi Arabia will cut around 486,000 bpd to reduce the supply glut that has dispirited markets for years.
Crude futures have rallied sharply, with U.S. oil futures gaining 23% since the middle of last month as optimism that an agreement would be reached started to increase.
Some observers believe market may be irrationally exuberant, given the expectation that various producers would not comply with the cuts, as promised.
At mid-day, in the U.S., the price of crude oil was $53.07, an increase of 3.05%, a significant percentage point increase in the price of the commodity since settlement on Friday.
Additionally, at mid-day, the price of Brent Oil was $55.84, an increase of 2.38% over Friday's settlement price.
Today's price is about 50% higher than at this time last year, signaling the biggest year-on-year rise on any single day for more than five years.
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