Oil prices have risen by 7% as producers meet in Vienna today and may reach a deal on reducing oil production to support prices.

International Brent crude LCOc1 gained $3.33 to touch at $49.71 per barrel, while the US West Texas Intermediate (WTI) crude too surged by $2.95 to touch at $48.18 a barrel, reported Reuters.

OPEC countries are meeting today to discuss the options of reducing oil production to increase the oil prices.

Prices have dropped by almost 50% from its 2014 rate as a result of excess production.

"There must be a general consensus that there will be a cut, whether it’s going to be bullish, I don’t know, but it’s the domino effect."

Traders and investors are keenly looking at the developments at Vienna. Prices can rise or dip based on the outcome of the meeting.

A consensus on production-cut can increase prices to $50, but a disagreement can pull it down to $40 a barrel.  

PVM Oil Associates analyst Tamas Varga was quoted by the news agency as saying: “The extent of the (price) move shows no one wants to miss the boat. There must be a general consensus that there will be a cut, whether it’s going to be bullish, I don’t know, but it’s the domino effect.”

Reuters quoted a source as saying that representatives were discussing a cut in production of 1.4 million barrels per day.