Oil jumps 6% as OPEC surprises with production cut

First deal in eight years

Crude oil prices surged by nearly 6% to $49 a barrel overnight after OPEC announced it had agreed a preliminary deal to cut oil production for the first time in eight years.

OPEC reached an unexpected agreement to limit its production to a range of 32.5-33 million barrels per day (bpd) at informal talks held at the International Energy Forum in Algiers over the last two days, This is down from its current estimated level of production of 33.24 million bpd. The cartel will agree to production levels for each of its member countries at its 30 November meeting in Vienna, and will seek support from non-member oil producers to further ease the global oversupply. Where now for oil after recent bull run? "We have decided to decrease production by around 70...