Brent on Monday closed up 3.8%, at $59.02 a barrel, its highest settlement since July 2015, while USA crude futures settled almost 23% above this year's low of $42.53 a barrel on June 21.
Also Read: India's crude oil production falls 2% in August, import bill rises 12%. What's noteworthy about these moves is that they pushed oil 20% above its bottom in June, which means crude is now officially in bull market territory.
Oil prices rose on Monday to their highest in eight months after major producers said at a meeting in Vienna the global market was well on its way toward rebalancing.
US crude futures closed 34 cents, or 0.7 percent, lower at $51.88 a barrel, after hitting a five-month high of $52.43.
Demand from China has been a crucial driver of the return to above $55 a barrel prices as the world's second largest economy builds its strategic petroleum reserve.
In May 2017, at the meeting in Vienna, the countries extended the agreement until April 2018, maintaining the previous quotas for all participants.
"We see the market over the next six months going well above $60 for a simple reason. surprisingly good demand", Adi Imsirovic, head of oil trading at Gazprom Marketing and Trading, told the S&P Global Platts APPEC conference in Singapore.
In the 2017 budget, the executive set the crude oil benchmark at 2.2 million barrels per day at a price of $42.5 per barrel, before the National Assembly pushed the benchmark to $44.5 a barrel with hopes that the black gold would remain at its January rate, which was above $50.
The 14-member Organization of the Petroleum Exporting Countries, led by No. 1 oil exporter Saudi Arabia, met in Vienna on Friday with the world's largest crude producer Russian Federation to discuss a range of price support options for oil. The EIA revised lower US oil production for 2017 from 9.35 million barrel per day to 9.25 million barrels per day a 100k barrel a day decrease.
We start the day with a higher USA dollar and we will have Consumer Confidence and New Home Sales at 9:00 A.M. and API Energy Stocks at 3:30 P.M. On the Corn front the market key is now the weather and harvest with rains and cooler temperatures are forecasted coming to a theatre near you. OPEC secretary-general Mohammed Barkindo said this week that crude exports from the Middle East to Asian markets were expected to increase by 7.5 million barrels a day between 2016 and 2040, to 22 million barrels.
Technological improvements and greater efficiency has helped US shale producers pump out crude oil at lower margins - some say it is now profitable at less than $50 per barrel.
Some analysts suggested, however, that the production-curb exemptions which have allowed Nigeria and Libya to ramp up production could be lifted to ease the glut in global crude supplies.