ANDREWS, TX - JANUARY 20: Unused tanks for the oil industry pile-up in a shop yard in the Permian Basin oil field on January 20, 2016 in the oil town of Andrews, Texas. Despite recent drops in the price of oil, many residents of Andrews, and similar towns across the Permian, are trying to take the long view and stay optimistic. The Dow Jones industrial average plunged 540 points on Wednesday after crude oil plummeted another 7% and crashed below $27 a barrel.   Spencer Platt/Getty Images/AFP
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ANDREWS, TX - JANUARY 20: Unused tanks for the oil industry pile-up in a shop yard in the Permian Basin oil field on January 20, 2016 in the oil town of Andrews, Texas. Despite recent drops in the price of oil, many residents of Andrews, and similar towns across the Permian, are trying to take the long view and stay optimistic. The Dow Jones industrial average plunged 540 points on Wednesday after crude oil plummeted another 7% and crashed below $27 a barrel. Spencer Platt/Getty Images/AFP == FOR NEWSPAPERS, INTERNET, TELCOS & TELEVISION USE ONLY ==

New Delhi: Crude oil futures rose sharply by 2.38 per cent to Rs 3,134 per barrel today as speculators raised their bets amid a firm trend overseas.

Analysts said rise in crude oil futures was largely in tandem with a firming trend in Asia after the OPEC producers’ group surprised the market with a deal to slash output.

At the end of six hours of negotiations and weeks of horse trading, OPEC announced the plan to cut production to a level of 32.5-33 million barrels per day (bpd) from 33.47 billion bpd in August, the International Energy Agency (IEA) said.

The informal meeting was held on the sidelines of an IEA meeting in a bid to stabilise prices that have been battered by a stubborn supply glut since 2014.

Oil prices soared by as much as six per cent following the news and extended gains in Asian trade today although at a slower pace.

In futures trading at the Multi Commodity Exchange, crude oil for delivery in most-active October was trading notably higher by Rs 73, or 2.38 per cent higher, at Rs 3,134 per barrel, clocking a business turnover of 9,704 lots.

On similar lines, crude for delivery in far-month November rose Rs 71, or 2.28 per cent, to Rs 3,187 per barrel, in a business volume of 329 lots.

Meanwhile, the US benchmark West Texas Intermediate crude prices for delivery in November was up 23 cents at USD 47.29 a barrel and Brent crude for November added 22 cents to USD 48.91 a barrel.

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