Oil is going crazy after the first deal in 15 years is sealed between Russia and Saudi Arabia to cut production.

The price of oil has surged by more than $2 a barrel, or 5%, after surprise cuts from Saudi Arabia and other major oil-producing countries.

Khalid al-Falih, the Saudi oil minister, announced a deal late on Saturday between OPEC and non-OPEC countries to cut oil production and boost prices.

At the core of the deal was an agreement between Saudi Arabia, the world's biggest oil producer and a core member of the OPEC group, and Russia, which led a consortium of other non-OPEC countries, to cut production by more than 500,000 barrels a day.

Saudi Arabia also surprised the market with deeper-than-expected cuts in its domestic production, sending oil past $52 a barrel as the market opened.

By Ben Moshinsky.

Full story at Yahoo News.