Crude rose above $55 a barrel to hit a 16-month high yesterday as rising prospects of a tightening market after last week’s Organization of the Petroleum Exporting Countries (Opec) agreement to cut production gave speculators impetus to increase bets on higher prices.

Oil fell below $45 in New York yesterday as an Organization of the Petroleum Exporting Countries (Opec) deal to curb output appeared in jeopardy after Iran and Saudi Arabia failed to bridge differences.

Oil climbed as Iraq’s oil minister said it pledged to co-operate with the Organization of the Petroleum Exporting Countries (Opec) to reach an agreement this week that’s acceptable to all members.

Irish explorer Providence Resources looks to be close to a deal with a rig contractor as it continues to ready itself for a return to drilling in Irish waters next year.

Oil fell back from one-year highs yesterday on fears that a production cut by the world’s largest exporters might not be enough to erode a two-year old global surplus of unwanted crude oil.

Oil prices jumped about 3% yesterday, with Brent hitting one-year highs, after Russia said it was ready to jointhe Organization of the Petroleum Exporting Countries (Opec) in curbing crude output and Algeria’s oil minister said he expected similar commitments from other non-Opec producers.

Organization of the Petroleum Exporting Countries (Opec) will stick to its policy of unfettered production after members failed to agree on a new output ceiling, but ministers were united in their optimism that global oil markets are improving.

Northern Trust’s chief economist has cast serious doubt over the possibility of a significant oil price recovery this year as the ongoing price war continues.

Oil fell yesterday, with US crude briefly slipping below $30, dented by worries about demand amid a mild winter and concerns of rising supply as hopes for a deal between the Organization of the Petroleum Exporting Countries and Russia on output cuts fade.

Saudi Arabia appears to have floated the idea of a global deal to balance oil markets and lift prices from around the lowest levels in six years although fellow producers Iran, Iraq and Russia yesterday rejected its main idea of cutting output.

A global oil supply glut will persist through 2016 as demand growth slows from a five-year high and key Organization of the Petroleum Exporting Countries (Opec) members maintain near-record output, the International Energy Agency (IEA) said, even as low prices curb supply outside the producer group.

BP has cut 300 North Sea oil jobs as its looks to save costs amid the plunging price.