Oil rose by as much as 6.5 percent on Monday to an 18-month high. OPEC and some of its rivals reached their first deal since 2001 to reduce output to try to tackle global oversupply and boost prices.
U.S. crude futures were up $1.75, or 3.4 percent, at $53.25 a barrel. They earlier touched $54.51, also a high going back to July 2015.
Producers from outside OPEC agreed to reduce output by 558,000 bpd, short of the target of 600,000 bpd but still the largest contribution by non-OPEC ever. "The observation of the OPEC-11 and non-OPEC 11 production cuts is required to sustainably support - oil prices to our 1H17 WTI price forecast of $55 a barrel " Goldman Sachs said.
According to Barclays, there are too many moving parts for OPEC's new policy to be sustainable in the long term.