Opec clinched a deal to curtail oil supply, confounding sceptics as the need to clear a record global crude glut — and prove the group’s credibility — brought its first cuts in eight years.

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.

Crude oil futures pared gains yesterday after top producers Russia and Saudi Arabia confirmed they had agreed to co-operate on stabilising the oil market, including limiting output.

Crude oil prices advanced, extending the longest winning streak in more than a year, as US crude and petrol inventories declined.

Oil gained after Opec’s president said the group will hold informal talks in Algiers next month and predicted the current bear market would be short lived.

Oil producers including Gulf Opec members support holding talks next month on a deal to freeze output even if Iran declines to participate, Opec sources said, as political pressure to prop up prices increases.

Iran plans to boost its output of crude oil to 4 million barrels a day before it will consider joining other suppliers in seeking ways to rebalance the global oil market.

President Vladimir Putin said Turkey’s shooting down of a Russian military jet was a war crime and that the Kremlin would punish Ankara with additional sanctions, signalling fallout from the incident would be long-lasting and serious.

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.

Brent crude oil traded below $60 a barrel yesterday, near five-and-a-half-year lows, as major oil producers signalled that they would maintain output despite a supply glut and faltering demand in Russia and Europe.

The UN Security Council is to hold an emergency meeting on Ukraine after Russia called for public talks on the growing crisis.