Mubasher: Oil prices surged nearly 6% on Wednesday after it was reported that the Organization of the Petroleum Exporting Countries (OPEC) has struck a deal to limit crude output at its policy meeting in Algeria.

The agreement limits OPEC’s production by nearly a million barrels per day to 32.5 million bpd, sources told Reuters.

This the first agreement to cut production since the oil market crashed two years ago on oversupply.

Brent crude went up 5.9% or $2.72 to $48.69 per barrel, hitting a more than two-week high, while US West Texas Intermediate (WTI) crude increased by 5.3% or $2.38 settling at $47.05 after a peak $47.45, its highest since Sept 8.