An oil price rally fuelled by OPEC’s deal to cut crude output fizzled out Thursday with analysts doubting the cartel’s ability to seriously tackle a supply glut.

Following a meeting that included Russia, the Organization of Petroleum Exporting Countries shocked markets Wednesday by saying it planned to trim total production by some 750,000 barrels per day.

This followed talks in Algiers as world oil producers seek ways to prop up prices that have plunged from $100 in 2014 to near 13-year lows below $30 at the start of 2016, mainly owing to excess supplies.

Exact details of the deal remain to be agreed and analysts said markets will now wait to see whether non-OPEC producers such as Russia, the United States and Canada will make cuts of their own.

“There is also the wider consideration of whether non-OPEC members, in particular Russia, will cooperate,” CMC Markets analyst Alex Furber told AFP.

Wednesday’s deal came after OPEC kingpin Saudi Arabia allowed bitter rival Iran to be exempted from the cutbacks, as the Islamic republic recovers from years of sanctions on its oil exports.

The cartel’s announcement of a first official reduction in eight years at first sent crude prices surging six percent Wednesday, while energy firms across the globe have seen their share prices soar.

But around 0915 GMT Thursday, US benchmark oil contract, West Texas Intermediate for delivery in November, was down 34 cents at $46.71 a barrel.

Brent North Sea crude for November shed 45 cents to $48.24 a barrel compared with Wednesday’s close.

In London stocks trading meanwhile, shares in Royal Dutch Shell advanced 5.5 percent and BP won 4.4 percent.

Source: AFP