Oil prices hit 18-month highs as markets eye output cuts

Oil futures exchanges were closed on Monday for New Year public holidays

Oil prices hit 18-month highs on Tuesday, the first trading day of 2017, buoyed by hopes that a deal between OPEC and other big oil exporters to cut production, which kicked in on Sunday, will drain a global supply glut.

Benchmark Brent crude jumped more than 2 percent to a high of $58.37, up $1.55 a barrel and its highest since July 2015. By 1230 GMT, Brent had eased to $58.07, up $1.25.

U.S. light crude oil hit an 18-month high of $55.24, up $1.52 a barrel, also its highest since July 2015, before slipping to around $54.95.

Oil futures exchanges were closed