At an informal meeting at Algiers, the 14-member OPEC agreed to cut production for the first time since 2008, proposing new production levels at 32.5 million to 33 million barrels a day, a 700,000 drop on August production levels at 33.24 million barrels a day. More details are expected to be hammered out at the group's next policy meeting on November 30.
Once OPEC hits its target, the group will seek support from non-member oil producers to further ease the global supply glut, Reuters reported.
Oil prices settled up nearly 6 percent on Wednesday in the U.S. after news of the deal, then continued to rise early in Asian trade before those gains pared. Benchmark U.S. West Texas Intermediate were traded around $47.10 a barrel and European Brent crude moved around $48.60 a barrel around 11am HK/SIN time.
The rise tapered off as the market became increasingly cautious over the details of the agreement and how it would be enforced, particularly since the OPEC members have a history of not adhering to production quotas.