Investing.com - Oil prices added to strong gains during North American hours on Monday, with Brent futures rising to a one-year peak after Russian President Vladimir Putin said his country is prepared to join an oil-output deal which may include a freeze or cut to output.
Brent oil for December delivery on the ICE Futures Exchange in London jumped as much as 3% to a daily high of $53.47 a barrel, a level not seen since October 9, 2015. It was last at $53.34 by 10:00AM ET (14:00GMT), up $1.41, or 2.72%.
Speaking at the World Energy Congress in Istanbul Monday, Putin said he hoped OPEC would agree on limits to its crude production in November and that Russia was ready to support that decision. Russia will continue to be a reliable energy supplier, he said.
Putin's bullish comments came after Saudi Arabia's Energy Minister Khalid al-Falih said he was optimistic a production deal could be reached by November and that it wasn’t “unthinkable” that crude prices could rise another 20% this year to $60 a barrel.
The Organization of the Petroleum Exporting Countries reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day in talks held on the sidelines of an energy conference in Algeria late last month, a reduction of 0.7%-to-2.2% from its current output of 33.2 million barrels.
However, market analysts remained skeptical of the deal, pondering how such a plan would be implemented.
The 14-member oil group said it won’t finalize details or complete its production agreement until the group’s next official meeting in Vienna on November 30.
Elsewhere, crude oil for November delivery on the New York Mercantile Exchange rose $1.39, or 2.79%, to $51.20 a barrel after touching an intraday peak of $51.30, the most since June 9.
Market players continued to focus on U.S. drilling prospects, amid indications of an ongoing recovery in drilling activity. Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. last week rose by 3 to 428, marking the 14th increase in 15 weeks.
Some analysts have warned that the current rally in prices could be self-defeating, as it encourages U.S. shale producers to drill more, underlining concerns over a global supply glut.
There will be no floor trading on the Nymex on Monday because of the Columbus Day holiday in the U.S. All electronic transactions will be booked with Tuesday's trades for settlement.