CBJ — Oil prices surged as much as 6% on Wednesday on news that OPEC had reached an agreement to limit production, but analysts remained cautious about the prospect of a sustained rally.

The OPEC cartel has agreed to limit production to 32.5 million barrels per day, after talks held by the group on the sidelines of the Sept. 26-28 International Energy Forum in Algiers, Algeria. The latest production figure for the group is 33.24 million barrels per day.

How much each member country will produce is to be decided at the next formal meeting of OPEC in November, when an invitation to join cuts could also be extended to non-OPEC countries such as Russia.

The news saw Brent crude rise as much as $2.76, or 6%. West Texas Intermediate rose by $2.35, or 5.4%.

But noting the agreement’s lack of firm details, analysts are cautioning against any expectations of an even bigger jump in the price of oil in the near term.

@CanBizJournal