OPEC has agreed to reduce production to 32.5 million barrels a day, two delegates to ministerial talks in Vienna told Bloomberg on Wednesday. The pact is likely to include an additional 600,000 barrels a day of cuts from non-OPEC suppliers.
WTI for January delivery rose as much as $3.89 to $49.12 a barrel on NYMEX this morning.
Brent crude jumped 7.8 percent to $50.02 at 1:36 p.m. in London.
Futures jumped as much as 8.6 percent, the most since Feb. 12.
Adding to the recent OPEC agreement was the news that U.S. crude stockpiles dropped by 717,000 barrels last week, the American Petroleum Institute was said to report Tuesday.