U.S. crude rallies to five-week high after first OPEC production deal since 2008

Crude prices reversed higher in American trade on Thursday after falling earlier in European trade, adding to its gains for the second session and hitting a five-week high as markets welcome the first OPEC production deal since 2008. 

As of 16:18 GMT, U.S. crude rose to $48.03 a barrel from the opening of $47.20, with an intraday high at $48.05, the best since August 26, with a low at $46.59. 

U.S. November futures closed up 5% yesterday, the largest gain since June 17, after OPEC agreed to cut production for the first time in 8 years. 

OPEC's members agreed to cut production by 700,000 to 800,000 barrels to 32.5 million barrels a day, while forming a special committee to specify the particular cuts for every country, with the final details due on the organization's official meeting on November 30. 

OPEC aims to rebalancing the oil markets and prices with this deal if agreed upon next November, so it tightens the gap between supply and demand. 

Crediting company Fitch said an OPEC production cut would support a slow recovery for oil prices, and not a strong rebound, while the international energy agency expected oil markets to rebalance next year.