Oil jumps on hopes of a new Opec deal

Oil prices rose sharply today on hopes the Opec cartel would strike a long-awaited deal to curb a supply glut that has triggered an energy industry crisis.

The price of oil has halved since mid-2014 due to chronic oversupply, but today’s meeting of the Organisation of the Petroleum Exporting Countries in Vienna could prove a turning point.

Several delegates were confident an agreement to limit output would finally be reached.

Brent crude jumped 2.74 cents, or 6%, to $49.12 a barrel and analysts predicted prices above $50 should a deal materialise.

The move comes despite deep divisions in the group, which accounts for a third of global oil production, and fears a cut would hand market share over to rival producers.

Iran and Iraq are reluctant to participate fully in any restrictions despite pressure coming from Saudi Arabia.