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The Organization of Petroleum Exporting Countries (OPEC) has agreed to cut production by 750,000 barrels a day, Bloomberg News reported Wednesday, citing a delegation member.

The surprise news triggered an immediate spike of more than 5 percent in crude prices, as markets had expected the Algiers meeting to end without agreement.

In London benchmark Brent North Sea crude for November delivery rose $2.72 to $48.69, while in New York a barrel of West Texas Intermediate (WTI) was up $2.38 to $47.05.
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OPEC members, whose countries produce 40 percent of the world’s crude oil, agreed to cut their output to 32.5 million barrels per day, Bloomberg said citing a delegation source who requested anonymity.

An informal OPEC meeting opened in Algiers earlier Wednesday to discuss a possible freeze in output by the cartel, with the aim of raising prices which have fallen by more than half since mid-2014.