LONDON, Nov 22: Oil prices surged above $20 a barrel for the first time in a week on Thursday as Norway said it was ready to cut output by up to 200,000 barrels a day, as long as other crude producers followed suit.

The Norwegian pledge raised expectations of a grand pact by the world’s largest oil powers to slash supply to rescue prices, which have fallen more than 25 per cent since September.

Brent North Sea crude for January delivery rallied $1.32 to $20.05 a barrel shortly after Norway said it would cut output by 100,000-200,000 barrels a day — between three and six per cent. Prices later ebbed back to $18.91.

The oil market is watching closely for signs of crude producers joining the Organization of Petroleum Exporting Countries (Opec) in a synchronised effort to rein in supply in line with falling demand in a climate of global economic weakness.—AFP