LONDON, Sept 29 (Reuters) - European shares climbed higher in early trading on Thursday, with energy shares rallying after oil prices surged overnight after OPEC struck a deal to limit crude output.
The Organization of the Petroleum Exporting Countries reached an agreement in Algiers to cut production to a range of 32.5-33.0 million barrels per day.
The European oil and gas index soared more than 4 percent and was poised for its best day in three months. Tullow Oil jumped more than 10 percent while heavyweights Royal Dutch Shell, Total and BP were up between 4-5 percent.
The pan-European STOXX 600 index was up 0.9 percent.
However, Capita slumped 20 percent, the worst performer in STOXX 600 index, after the British outsourcing group cut its full-year profit outlook by as much as 13 percent, the second support services group to warn that clients were delaying decisions following the UK's vote to leave the EU. (Reporting by Atul Prakash, Editing by Vikram Subhedar)