NEW YORK—Oil prices climbed Wednesday on a news report that the Organization of the Petroleum Exporting Countries reached a deal to limit production starting in November.

OPEC, which met Wednesday in Algeria, hasn't announced the outcome of its talks.

Reuters reported the group reached a deal to limit its output to 32.5 million barrels a day with "execution" in November, citing two unnamed sources. That production level would mark a slight decrease from the group's August production, according to the Energy Information Administration.

U.S. crude for November delivery settled up $2.38 to $47.05 a barrel on the New York Mercantile Exchange, the biggest one-day increase since April. Brent, the global benchmark, rose 6.3% to $48.86 a barrel on ICE Futures Europe.

OPEC hasn't taken action to freeze or cut its production since oil prices started falling in mid-2014. Talks in April about a production freeze fell apart because Iran refused to participate.

While oil prices rallied on the report, analysts noted that a production freeze at current high output levels would keep the market oversupplied. Some members would likely be allowed to continue increasing their production despite a deal, said Commerzbank in a note.

Also on Wednesday, weekly inventory data showed U.S. supplies of crude oil and refined products were near unchanged and traders waited for news from a gathering of major producing nations to discuss limiting production.

U.S. crude supplies fell by 1.9 million barrels in the week ended Sept. 23, the Energy Information Administration said Wednesday. Analysts surveyed by The Wall Street Journal had expected the agency to report an increase in crude stockpiles.

But supplies of gasoline rose by 2 million barrels, and total inventories of crude oil and refined products held unchanged near record highs.

"This report is neutral," said Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy-trading desk. "It just continues to show that [inventories] are plugging along at the higher end of normal everywhere."

Kevin Baxter contributed to this article.

Write to Nicole Friedman at nicole.friedman@wsj.com

(END) Dow Jones Newswires

September 28, 2016 15:15 ET (19:15 GMT)