The price of oil today rose to its highest point since August, supported by a planned production cut by OPEC (The Organisation of the Petroleum Exporting Countries).

The December contract for global benchmark Brent was up 0.96% at $50.56 per barrel today.

OPEC said last week that it would cut output to between 32.5 million barrels per day and 33.0 million barrels per day. This would represent an estimated cut of around 1 million barrels per day. This would be the first deal to cut production in eight years.

Oversupply and slowing demand has seen oil prices plunge from $110 per barrel to under $50 per barrel over the past two years.

While no formal agreement has been signed yet, full details of the OPEC agreement are expected to be announced at the next meeting which is scheduled for 30th November.

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