OPEC and some non-OPEC members met in the weekend and agreed to curb oil outputs, which is considered a turning point as it’s the first deal like this for 15 years.

On Saturday, producers from outside OPEC agreed to reduce output by 558,000 barrels a day down from the hoped 600,000 bpd cut.

Saudi Arabia has been a significant leader in this agreement since last September trying to talk with producers around the globe to reach the result we have today.

Russian Energy Minister Alexander Novak commented on the deal as a historic event and that it is the first time that so many oil-producing countries from different parts of the world have gathered in one room to accomplish what they have done.

Brent crude was up more than 4 percent to $56.64 a barrel, its highest in 16 months.

West Texas Intermediate, the U.S. benchmarks, surged 4.4 percent at $53.78.

Nymex crude oil futures hit a 16 month high at $54.51 up by $2.00 a barrel.

The overall cut agreed upon by OPEC and non-OPEC producers is 1758000 bpd.

The Saudi oil minister, Khalid al-Falih, said, “I can tell you with absolute certainty that effective 1 January, we’re going to cut and cut substantially to be below the level that we have committed to on 30 November.”

Also Iraq’s oil minister, Jabar al-Luaibi said Iraq is committed to the cut deal although it had plans to raise output in the future.

Meanwhile, U.S. shale producers will take the deal as an opportunity to pump higher outputs but expectation that crude oil prices will not be affected much.

News of the cut sent the Russian currency up more than 2 percent against the dollar to hit a 14 month high despite the prospect of a U.S. interest rate rise on Wednesday.

Bond yields fell of higher inflation expectations because of the higher priced oil.

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