Shell and BP both saw their stock hike up the FTSE 100 after OPEC’s landmark decision to cut production.
Shell soared to the top of the FTSE 100, up 4.8% to £21.30.
BP was 4.1% at 460.6p.
Tullow Oil (+10.3%), Cairn Energy (+10.6%), Hunting (+(9.9%), Amec Foster Wheeler (+6.6%) and John Wood(+3.9%) all experienced major gains.
The price of Brent of crude rose 7.3% to $49.78 in the wake of the decision. It’s thought it could continue to climb to $60.
Colin Welsh, the head of Simmions, said the move to stifle output was ultimate Christmas present to the North Sea.
However, Bob Ruddiman, head of energy at legal firm Pinsent Masons, said “more meat on the bones” would be needed before time is called on the downturn.
Saudi Arabia, which raised oil production to a record this year, will reduce output by 486,000 barrels a day to 10.058 million a day, an OPEC document shows. Iraq, the group’s second-largest producer, agreed to cut by 210,000 barrels a day from October levels. The country had previously pushed for special consideration, citing the urgency of its offensive against Islamic State.
The accord comes into effect at the start of 2017 and will last six months. The pact also calls for an additional 600,000 barrels a day reduction from non-OPEC suppliers.