Price of oil surges as non-OPEC members agree to cut output

The new deal is the first such global pact in 15 years...

Oil prices hit their highest level in almost a year and half on Monday morning, as Russia and other major producers agreed over to the weekend to join the Organisation of Petroleum Exporting Countries (OPEC) in cutting their planned 2017 output.

The cost sailed past $57 a barrel – its most expensive since July 2015 – with US crude futures leaping more than 5%.

On Saturday, non-OPEC countries announced they would cut their output by 558,000 barrels a day. Russia accounts for the major share of the cut.

OPEC confirmed last month that it would be cutting its own production, as it attempts to reduce oversupply and boost prices.

Despite the immediate impact on prices, some experts are unsure whether the measures will ultimately go far enough.

Thomas Moore, an investment director at Standard Life Investments, told BBC Radio 5 Live:

"You will see the oil price jump this morning – that's understandable – but I think you need to put it in context.

"This is a cut of 550,000 barrels a day, and of course we have had about a million off OPEC's production.

"But if you think about overall world production, OPEC's producing 33 million barrels per day, so those numbers of 1.5 million are good, but they are not that good.

"And OPEC accounts for only about 40% of world crude production, so yes, there's a day-one impact, but I think it's at the edges here."

Oil prices have more than halved since 2014 due to a glut of supply.