The Organization of the Petroleum Exporting Countries (OPEC) has agreed its first oil output cuts since 2008.
According to the Reuters News Agency, the agreement was in line with an accord reached in Algiers in September.
OPEC member Algeria was proposing to set a new production ceiling at 32.5 million barrels per day, down from current levels of 33.6 million.
Oil prices jumped more than 8 percent on Wednesday to a five-week high after the announcement.
Brent crude futures for delivery in January were up $3.88, or 8.4 percent, at $50.26 a barrel by 9:03 a.m. ET (1403 GMT), 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 $3.85 at $51.17 a barrel.
U.S. West Texas Intermediate (WTI) crude futures rose $3.58, or 7.9 percent, to $48.81 a barrel, a one-week high.
OPEC started a meeting at 0900 GMT on Wednesday at its Vienna headquarters to discuss terms of a potential deal to cut production in an effort to prop up prices that have fallen by more than half since 2014 due to oversupply.
A source told Reuters that delegates were discussing a bigger than expected cut in production of 1.4 million barrels per day (bpd).