Investing.com -- Crude futures rose considerably on Monday amid news that Russia is willing to meet with a host of major oil producers to discuss a plan to combat crashing energy prices worldwide, before paring some gains late in the session as investors locked into profits from a recent surge.
Energy traders also digested reports over the weekend that Saudi Arabia has cut prices for November crude oil exported to Asia and the U.S. in a last-ditched effort to regain market share from its top competitors before the front month of crude future contracts expire later this month.
On the New York Mercantile Exchange, WTI crude for November delivery traded between a low of $45.22 and a high of $46.91 before settling at $46.31, up 0.77 or 1.70% on the day. In spite of extreme volatility in energy markets over the last several weeks, crude prices have remained in a holding pattern since Labor Day. Over the last 30 days of trading, Texas Long Sweet futures have not closed outside of a range between $44 and $47.50 a barrel. During that span, WTI crude has risen by approximately 1.5% in value.
On the Intercontinental Exchange (ICE), brent crude for November delivery wavered between $47.84 and $49.86 a barrel before closing at $49.36, up $1.22 or 2.53% on the session. At one point on Monday, both brent and WTI futures for November delivery neared their highest levels in two weeks. The spread between the international and U.S. benchmark of crude stood at $3.05, above Friday's level of $2.62 at the close of trading.
Crude futures posted steady gains on Monday following news that Russia has expressed a desire to meet with both OPEC and non-OPEC members to craft a strategy aimed at stabilizing global oil prices. In September, Russian oil production surged to a post-Soviet Union record high near 10.75 million barrels per day, even as crude price hovered near six and a half year lows. In recent months, though, Russia has shown an unwillingness to slash crude output even if it could help bolster global oil prices.
One of the meetings, according to Russia energy minister Alexander Novak, will take place with high-level energy officials from Saudi Arabia at the end of October. Russia, which is among the top three oil producers in the world, has seen its economy struggle amid a prolonged downturn in crude prices. Last December, the ruble plunged to an all-time low of 72.45 against the dollar, losing approximately one-third of its value in a span of three weeks. While the ruble has rebounded somewhat this year, it stood at 64.86 on Monday, only up roughly 10% since December's swoon.
News of the potential Russian-Saudi meetings came one day after Bloomberg reported that Saudi Arabian oil company Aramco slashed its prices on oil sales to Asia and the U.S. in attempts to boost demand in both regions. Aramco, according to Bloomberg, has increased its discount for Medium grade crude to Asia to a discount of $3.20 a barrel, far above the $1.30 discount it offered a month earlier. Aramco has also increased discounts for light, medium and heavy grades of Crude exports to the U.S. by 0.30 a barrel.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, stood at $96.28 in U.S. afternoon trading, up 0.24% on the day. Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.