The oil ministers from the OPEC cartel and a group of non-OPEC partners agreed on Thursday (US time) to extend crude output cuts until the end of next year in efforts to keep supplies tight and bolster prices.
The move reflects the success of their strategy of pumping less oil for more dollars.
Benchmark crude prices are now close to US$60 a barrel, up almost 20 per cent since a year ago, when the Organization of the Petroleum Exporting Countries and their non-OPEC partners agreed to reduce supply by a daily 1.8 million barrels.
Announcing the decision after meetings Thursday, Saudi Arabian oil minister Khalid Al-Falih, OPEC's president, exclaimed, "it's been a great day."
The move had been expected after bitter rivals Saudi Arabia and Iran appeared on the same page going into Thursday's meeting.