The ministerial meeting held between Opec and Non-Opec members through video conference on Sunday decided to slash production by 9.7 million barrels a day for May and June.
Brent crude prices rose 4.19 per cent or $1.32 per barrel to $32.80 while the West Texas Intermediate (WTI) crude was priced at $23.87 per barrel, higher by $1.15 or 5.05 per cent from its previous closing levels.
The move triggered a decline in the Indian share market with Sensex slipping over 600 points in the opening session.
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It was one of the most awaited decisions with world leaders such as US President Donald Trump welcoming the move and praising the Russian President and the King of Saudi Arabia.
"The big Oil Deal with OPEC Plus is done. This will save hundreds of thousands of energy jobs in the United States. I would like to thank and congratulate President Putin of Russia and King Salman of Saudi Arabia. I just spoke to them from the Oval Office. Great deal for all," Trump tweeted.
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The meet was supposed to be held last week but got delaying allaying anxiety in the oil markets. In early March, talks between Opec and Russia for crude production cuts fell apart triggering a bloodbath in the oil market.
Earlier, the talks on the issue had failed as both sides could not agree on the output cut which threw the oil market out of gear as prices fell to multi-year low with the industry estimating huge losses.
After the talks collapsed, Saudi Arabia decided to increase oil production in April to maintain its market share. With the outbreak of Covid 19 and fall in demand, global oil price plunged below $25 a barrel.
Even as the reduction in oil output including large producers such as Canada, Norway may stabilize oil prices, for now, the oil may be range-bound between $35-40 per barrel unless the demand picks up.
(With inputs from IANS)