Investing.com -- Crude futures rallied sharply on Monday extending considerable gains from late last week, amid downwardly revised estimates on U.S. output along with signals that OPEC could be willing to meet with its member states from emerging markets to develop a strategy in order to address crashing energy prices.
On the New York Mercantile Exchange, WTI crude for October delivery traded in a broad range between $43.61 and $49.29 a barrel before closing at $49.17, up 3.95 or 8.65% on the session. After falling below $39 a barrel in the middle of last week, U.S. crude futures have soared more than 25% over the last three sessions to erase all of its losses on the month. In spite of the recent surge, Texas Long Sweet futures are still down by more than 15% since the start of July.
On the Intercontinental Exchange, brent crude for October delivery wavered between $48.26 and $53.09 a barrel before settling at $54.09, up 4.05 or 8.08% on the session. For August, brent futures also closed higher by nearly 2%. The sharp rebound in crude prices since last Thursday represents the strongest three-day rise in more than a decade.
Meanwhile, the spread between the international and U.S. domestic benchmarks of crude stood at $4.92, slightly above Friday's level of $4.88 at the close.
Crude prices reversed territory in Monday's session after OPEC, the world's largest oil cartel, issued a bulletin claiming that it "stands ready to talk to all producers," in an effort to stabilize a volatile energy market. Crude futures worldwide are down more than 40% since OPEC rattled global markets last November with a strategic decision to maintain daily production above a level of 30 million barrels per day. OPEC officials still remained adamant that it will protect its "own interests," and will not be a party to any discussions that aren't held on a "level playing field."
"Today's continuing pressure on prices, brought about by higher crude production, coupled with market speculation, remains a cause for concern for OPEC and its members—indeed for all stakeholders in the industry," OPEC officials wrote in a publication released on Monday.
The comments come days after reports surfaced that Venezuela in collaboration with Russia could push OPEC to hold an emergency meeting to suggest a method for helping bolster the price of crude oil. On Monday, a Kremlin aide said Russia president Vladimir Putin and Venezuelan president Nicolas Maduro could engage in talks to discuss "possible mutual steps" to stabilize oil prices worldwide at a meeting in China this week.
Crude proceeds from Venezuela's state-run oil companies account for 50% of its government revenue, 95% of its exports and 25% of its GDP, according to the U.S. Council on Foreign Relations. Russia, which is not a member of OPEC, derived more than 50% of its total exports from crude or petroleum products in 2013, according to the U.S. Energy Information Administration (EIA).
Separately, the EIA on Monday said U.S. crude output declined by more than 0.25 million barrels in June to 9.4 million bpd. The production decrease extended a monthly loss of 0.212 million bpd from the previous month. In April, U.S. crude production reached 9.612 million bpd, its highest level in more than 40 years.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, stood at 95.90 in U.S. afternoon trading, down 0.24 or 0.25%. Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.