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Brent crude oil rose almost 6% to nearly $49 a barrel after Opec has agreed a preliminary deal to cut production for the first time in eight years.

The major oil exporting nations struck the deal at talks in Algeria on September 28 to ease fears of oversupply.

“Opec made an exceptional decision today,” Iran’s Oil Minister Bijan Zanganeh said.

While oil saw only small gains in early Asian trade, energy firms across the region soared.Oil prices fall below 28

Oil ministers said full details of the agreement would be finalized at a formal Opec meeting in November.

Output will fall by about 700,000 barrels a day, although the cuts will not be distributed evenly across the cartel, with Iran being allowed to increase production.

Disagreements between Iran and its regional rival Saudi Arabia had thwarted earlier attempts to reach a deal.

Many of Opec’s smaller members pushed for the cut after seeing oil prices plunge from $110 a barrel over the past two years due to oversupply and slowing demand.

Nigerian Oil Minister Emmanuel Ibe Kachikwu said it was a “very positive deal”, while Algerian Energy Minister Noureddine Bouarfaa said: “The decision was unanimous, and without reservations.”

The outline deal will limit output from Opec countries to between 32.5 million and 33 million barrels a day, said Mohammed Bin Saleh Al-Sada, Qatar’s energy minister and current president of Opec.

Current output is estimated at 33.2 million barrels per day, although Iraq questioned on Wednesday how Opec measures the oil production of its members.

Some oil traders remain skeptical about the deal, saying they want to see the full terms, including the cuts agreed by individual member states, before passing judgement.

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Oil prices soared as much as 12% on February 12 after new suggestions that OPEC nations were set to cut oil production.

According to the Wall Street Journal, the United Arab Emirates’ energy minister said that OPEC members were ready to reduce output.

Meanwhile, Venezuela’s oil minister said oil-producing nations were on a “very good path” to clinch a deal.

However, traders said sharp falls on February 11 may have triggered some bargain-hunting.

Eulogio Del Pino, the Venezuelan minister, who recently visited Russia and Saudi Arabia as part of a global tour to drum up support among both OPEC and non-OPEC producers, said “we’re on a very, very, very good path” to reducing production.Oil prices February 2016

Brent crude closed up $3.30 at $33.36 a barrel in New York after falling below $30 on February 11.

After sinking to a 12-year low of $26.05 on February 11, US crude settled up 12%, or $3.23, to $29.44 a barrel – its biggest one-day rise since 2009.

Many traders were skeptical about the Journal‘s report, pointing out that Venezuela and Russia had tried in vain earlier this week to stir Saudi Arabia and other major producers into agreeing to output cuts.

However, some believe that prices would rebound sooner or later if production tightened or demand rose.

Commerzbank analysts said: “We expect declining US oil production, in particular, to drive the oil price back up to $50 per barrel by the end of the year.”

Friday’s price rises were also aided by figures from oil services company Baker Hughes, which said that US energy companies cut the number of oil rigs for the eighth consecutive week to the lowest levels since January 2010.

Drillers removed 28 oil rigs, bringing the total rig count down to 439, Baker Hughes said.

The jump in oil prices helped to boost sentiment on stock markets.

Wall Street was trading higher on February 12, with the S&P 500 rising 1.8% and the Dow Jones Industrial Average up close to 2% in late trading.

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