Oil prices settled up nearly 6 percent on Wednesday after OPEC sources said the group has struck a deal to limit crude output at its policy meeting in November, its first agreement to cut production since the market crashed two years ago on oversupply.
The Organization of the Petroleum Exporting Countries reached agreement to limit its production by nearly a million barrels per day to 32.5 million bpd in talks held on the sidelines of the Sept. 26-28 International Energy Forum in Algiers, the sources told Reuters.
OPEC will agree to concrete levels of production for country at its Nov. 30 meeting in Vienna, the sources said.
After reaching its group target, it will seek support from non-member oil producers to further ease the global glut, they added.
Brent crude settled up $2.72, or 5.9 percent, at $48.69 a barrel, hitting a more than two-week high of $48.96. U.S. West Texas Intermediate (WTI) crude settled up $2.38, or 5.3 percent, to $47.05 a barrel.