Oil prices surged on Friday after major oil producers have reached a deal to cut oil production next year to boost the market.

Brent crude, the international benchmark for oil prices, was trading at $63 a barrel, up nearly 5% at midday U.S. Eastern time. West Texas Intermediate rose 4.3% to $53.69.

OPEC and allied oil-producing nations, including Russia, agreed to reduce the oil supply to the global market by 1.2 million barrels a day. The 15 OPEC members pledged to reduce their production by 800,000 barrels per day for six months beginning in January, while Russia and other producers promised to slash an additional 400,000 barrels per day.

The agreement comes as the oil market is near the bottom of its worst price plunge since the 2008 financial crisis.