Opec has agreed to the first supply cut in eight years in order to increase oil prices.

Opec’s president, Mohammed Bin Saleh Al-Sada, said a cut of more than a million barrels a day would start from January.

After more than two years of reduced prices, which have more than halved since 2014, due to a supply surplus.

The price of Brent crude jumped 10% to $51.94 a barrel, and US crude rose 9% to $49.53.

Non-Opec countries will be expected to cut production as well by 600,000 barrels a day.

Russia was prepared to cut 300,000 barrels from its output of more than 10 million barrels a day.”This agreement comes from a sense of responsibility from Opec member countries and non-Opec member countries for the general well-being and health of the world economy,” he said.

Disagreements between Saudi Arabia and Iran led to doubts an agreement would be secured.