Oil prices went up almost 6 percent after OPEC sources announced that it has agreed to restrict crude output in November.
28 Sept 2016 – CNBC
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.
The oil rally spilled over into the stock market, with Wall Street’s index of energy shares rising 4 percent on track to its best day since January.
“This is a historic deal. This is the first time OPEC and non-OPEC will agree together in over a decade. This should put a floor on oil and should see oil move back toward the $60s,” Phil Flynn, analyst at Chicago-based brokerage Price Futures Group.