Tokyo — Oil prices, and energy shares swept higher on Thursday after oil cartel Opec agreed to cut crude output to clear a glut, while the dollar and bond yields rose sharply on the prospect that resulting inflationary pressures will lead to higher interest rates. Opec on Wednesday agreed to its first output cut since 2008, finally taking action having seen global oil prices fall by more than half in the last two years. Non-Opec Russia will also join output reductions for the first time in 15 years. US crude oil soared more than 9% overnight to a one-month high just shy of $50 a barrel. The contracts were a fraction lower at $49.42 a barrel early on Thursday. Brent crude was just below $52 a barrel after rallying to a six-week peak of $52.37. The jump in oil prices added to inflation expectations in the US, which were already high on prospects that president-elect Donald Trump would adopt reflationary policies using a large fiscal stimulus. As a result US treasuries resumed their ro...
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