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Oil Up 7 Percent as Market Awaits Details of First OPEC Production Cut in Eight Years

Oil prices rose more than 7 percent on Wednesday as some of the world's largest oil producers agreed to curb oil output for the first time since 2008 in a last-ditch bid to support prices.

U.S. West Texas Intermediate crude futures for January delivery rose $48.59 a barrel, a 7.4 percent gain. WTI prices traded at a high point for the day of $49.12 and a low of $45.22 a barrel.

Brent crude futures for January delivery rose to $50.01 a barrel, a 7.8 percent gain, recovering from a drop of nearly 4 percent on Tuesday and on course for their biggest one-day move in nine months. Brent crude for delivery in February was up $3.58, at $50.90 a barrel.

The Organization of the Petroleum Exporting Countries has agreed its first output limiting deal in eight years, an OPEC source told Reuters as the debates continued in Vienna on the exact size of each member's cuts.

Key OPEC member Saudi Arabia said it was prepared to accept "a big hit" on its own production and agree to arch-rival Iran freezing output at pre-sanctions levels.

A new wild-card was the suspension of Indonesia from OPEC Tuesday, sources said. The organization has agreed to distribute Indonesia's oil output share among certain OPEC countries. Indonesia produced about 730,000 barrels per day in October, according to an OPEC survey from Reuters.

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A preliminary agreement struck in Algiers in September set an output cap at around 32.5-33 million barrels per day compared with the current 33.64 million bpd.

Before Wednesday's meeting, Saudi Energy Minister Khalid al-Falih said OPEC was indeed focusing on reducing output to a ceiling of 32.5 million bpd and hoped Russia and other non-OPEC producers would contribute a cut of another 0.6 million bpd.