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Higher prices could make oil producers' dividends more sustainable

The price of oil is rising as traders look for an OPEC-led production cut to be extended beyond its current expiry date of next March through the whole of 2018.

The international benchmark Brent opened above $60 per barrel on 30 October – close to its highest level since July 2015.

This could help make the dividends on offer from BP (BP.) and Royal Dutch Shell (RDSB), currently yielding 5.9% and 6% respectively, more secure.

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