The deal is the first agreement between Opec and non-Opec countries to jointly cut production since 2008, when global market crashed.The surprise Wednesday deal saw oil prices rise 6%, and fuelled a rally in US stocks.
Craigs Investment Partners broker Peter McIntyre said crude oil prices rallied after the deal, which is set to limit oil output before the end of the year, was announced.
"Lowering world prizes would address the current oversupply problems in the market and that would lift crude oil prizes," he said.
He said futures for delivery of US crude rose $US2.38 to $US47.16 a barrel, the biggest one-day increase since April.
The global benchmark oil, Brent crude, from the North Sea, rose 6.3% to $US48.86 on the futures market, he said.
"Opec hasn’t taken action to cut production since oil prices started falling in 2014," Mr McIntyre said.
An attempt by Opec at a meeting in April to freeze production "fell apart", because Iran would not participate.
"We’ll now wait for the November Opec meeting for a plan to formalise," he said.
Opec is set to agree to production levels for each member country at its November 30 meeting in Vienna, group officials told Reuters.
After reaching its group target, Opec would seek support from non-member oil producers to further restrict the oil supply.
Iranian Oil Minister Bijan Zanganeh was reported to have said at an energy forum this week: "We have decided to decrease the production around 700,000 bpd [barrels per day]."
Opec had reached an agreement to limit its production to between 32.5 million barrels per day and 33 million barrels per day during talks held on the sidelines of the September 26-28 International Energy Forum in Algiers this week, group officials told Reuters.
Opec estimated its output at present was 33.24 million barrels per day.
The oil rally spilled over into the stock market, and Wall Street’s index of energy shares rose 4% for its best one-day gain since January.
Phil Flynn, an analyst at Chicago-based brokerage Price Futures Group said it was "a historic deal".
"This is the first time Opec and non-Opec [countries] will agree together in over a decade. This should put a floor on oil and should see oil move back towards the $US60s."
Mark Kepner, managing director at Themis Trading in Chatham, New Jersey said the energy sector had been the biggest drag on earnings for the past year and a-half or two years.
"If you can get some stability there, all of a sudden earnings start to look a lot better," Mr Kepner told AAP.
— Additional reporting Reuters/AAP
