Oil futures rallied Monday, tacking on more than 2%, after reports that several members of the Organization of the Petroleum Exporting Countries are pushing for a deal to freeze production to boost prices.
September West Texas Intermediate crude rose $1.10, or 2.6%, to $42.90 a barrel on the New York Mercantile Exchange, while October Brent on London’s ICE Futures exchange gained $1.01, or 2.3%, to $45.28 a barrel.
Futures have wavered for the last several sessions around the low $40-a-barrel mark after last week’s rebound from bear-market lows. The recent slump in prices have revived concerns over a supply glut in the market, fueling worries among some OPEC members that the price is becoming too low again.
Members including Venezuela, Ecuador and Kuwait are now pushing for fresh talks on setting new limits for oil production in a bid to push prices higher by constricting the amount of oil they release to the market.
Qatar’s Energy Minister Mohammed bin Saleh al-Sada said in a statement on Monday the cartel will hold on an informal meeting in Algeria on September 26-28.
“OPEC continues to monitor developments closely, and is in constant deliberations with all member states on ways and means to help restore stability and order to the oil market,” he said.