Oil price gushes as Opec sticks to new year pledge

Oil rose to an 18-month high as output cuts by Kuwait and Oman signalled that Opec and its partners are delivering on their accord to stabilise the market.

Futures climbed up to 2.8% yesterday in New York after adding 45% last year, the biggest annual gain since 2009. Officials from Oman and Kuwait told local media they’re cutting oil production in January, fulfilling pledges that they and 22 other producers made on December 10.

Prices also advanced as China’s manufacturing purchasing managers index stabilised near a post-2012 high, signalling demand may be supported in the world’s second-biggest oil user.