Oil tops $55 for first time in 16 months

LONDON: Brent crude oil rose above $55 a barrel on Monday, trading at a 16-month high, on rising prospects of a tightening market after OPEC agreed a landmark deal to cut production last week.

Monday's gains take the rally since the agreement was struck on Wednesday to 19 percent for Brent, the biggest jump in almost eight years, and 16 percent for U.S. crude.

Brent futures, the global benchmark used to trade oil, soared to their highest since July 2015 at $55.33 a barrel. They were at $55.04, up 58 cents, or 1 percent, at 1431 GMT. West Texas Intermediate (WTI) crude traded up 48 cents, also 1 percent, at $52.16 a barrel.

"OPEC sentiment continues to support oil markets. Speculative short positions are still at elevated levels and as more traders unwind these positions they could trigger more support for oil prices," said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam. The OPEC deal has given speculators impetus to increase bets on higher oil prices.