Investing.com - The Organization of the Petroleum Exporting Countries reached an agreement on a deal to curb oil output following crunch talks in Vienna on Wednesday.
OPEC agreed to cap output at 32.5 million barrels per day, a cut of 1.2 million barrels a day.
In September, the producer cartel reached a preliminary agreement to cut production to between 32.5 million and 33 million barrels per day from current levels of 33.6 million barrels per day.
But rubber stamping a deal on the first OPEC supply cut since 2008 proved problematic during weeks of often strained negotiations, amid disagreements over which producers should cut and by how much.
The output deal will come into effect in January 2017 and will last for six months, but can be extended.
The 14-member cartel, which is responsible for a third of global oil production, is reining in output in a bid to reduce a global supply glut that has seen prices more than halve since mid-2014.
The organization said the agreement was subject to Russia and other non-OPEC countries contributing a cut of another 0.6 million barrels per day. OPEC said Russia has indicated that it will cut output by 300,000 barrels per day.
OPEC also suspended net oil importer Indonesia from the cartel, freeing up its quota of around 740 barrels per day to be shared among other members.
U.S. crude oil was trading at $49.20 a barrel following the announcement, up $3.96 or 8.76% from its last close.
Global benchmark Brent futures were up $4.31 or 9.31% to $51.66 a barrel.