Oil prices surged four percent Thursday, after OPEC and Russia agreed to cap output to cut the global supply glut more quickly. The coordination with non-OPEC member Russia to cut output for the first time in eight years buoyed market sentiment. Brent crude extended gains after the announcement and traded at $50  per barrel. At one point, the price reached a 16-month high of $54.5 per barrel in intra-day trade.

The deal also led to record trading volumes of Brent futures. Refined products from the US, which is not an OPEC member, also rose by over five percent. Oil prices are still just half of their peak levels that were reached in 2014. The market is also concerned about the aftermath of the deal, particularly on compliance and how other non-OPEC members might react.