Oil prices jump to multi-week highs after OPEC+ output cut

Oil prices rose on Friday for a fifth straight session, as market participants assessed major producers' decision to cut output.

The West Texas Intermediate (WTI) for November delivery increased 4.19 U.S. dollars, or 4.7 percent, to settle at 92.64 dollars a barrel on the New York Mercantile Exchange. It marked the highest finish since Aug. 29 for the U.S. crude standard, according to Dow Jones Market Data.

Brent crude for December delivery added 3.5 dollars, or 3.7 percent, to close at 97.92 dollars a barrel on the London ICE Futures Exchange, the highest since Aug. 30.

For the week, the WTI spiked 16.5 percent, while Brent surged 15 percent, based on the front-month contracts.

The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, on Wednesday decided to reduce production by 2 million barrels a day starting November in a bid to shore up prices.

"By formally reducing the daily production quota by 2 million barrels, OPEC+ is doing its utmost to avert a price slump on the oil market," energy analysts at Commerzbank Research said Friday in a note.

The decision to cut would help "prevent the surplus that has been predicted for the final quarter of this year," they said.

Concerns about demand amid growing recession risks and the sharp appreciation of the U.S. dollar caused oil prices to fall at the end of September to their lowest level since January.