Investing.com - Oil prices reversed early losses to trade in positive territory on Monday after Russia said its crude output would remain flat next year.
Crude oil for May delivery on the New York Mercantile Exchange rose 87 cents, or 2.17%, to trade at $40.56 a barrel by 10.06 ET.
Global benchmark Brent was up 94 cents to $42.84.
Oil turned higher after Russian Energy Minister Alexander Novak said Russian oil production is seen unchanged in 2017 compared to an expected increase in 2016.
Oil prices had slid earlier in the day after market analysts warned that a meeting of major oil producers in Doha later this month would have a limited effect on curbing global overproduction.
Barclays (LON:BARC) said the results of the producer meeting, planned in Qatar for April 17, would have a limited effect on supply, given that the producers that have the potential to grow output (Iran, Iraq) are not involved in the freeze.
In addition, Goldman Sachs (NYSE:GS) noted that a production freeze at recent output levels would not accelerate the rebalancing of the oil market.
Oil prices have rebounded from 12-year lows hit in February with hopes that key producers will agree on a plan to cap output in order to tackle a global glut playing a major part in the recovery.
Global overproduction is currently estimated at about 1 million barrels per day in excess of demand.
Indications that U.S. shale oil producers are cutting back on drilling activity have also boosted prices.
Oil prices rallied on Friday after data showing that U.S. crude inventories and the U.S. oil-rig count fell.
Baker Hughes reported that the number of U.S. oil-drilling rigs, viewed as a proxy for activity in the sector, fell by eight to 354 in the latest week.
U.S. crude stockpiles fell by 4.9 million barrels in the week ended April 1.
But U.S. crude oil inventories are standing at 529.9 million barrels, historically high levels for this time of year, according to the U.S. energy department.