Oil prices rebound from multi-week lows on output deal chatter

Oil prices bounced back from multi-week lows on Monday on hints that producers were close to reaching an output deal. Oil markets have come under pressure due to a persistent glut and a price collapse over the past two years.

Venezuelan President Nicolas Maduro said that OPEC and non-OPEC producers are close to reaching an output stabilizing deal. Maduro said that a deal could be announced this month. OPEC Secretary-General Mohammed Barkindo had said during a visit to Algeria that OPEC members may even call an extraordinary meeting to discuss oil prices if they reach consensus at an informal gathering in Algiers this month.

Oil prices rose almost 2 percent on Monday after Nicolas Maduro's comments. Clashes in Libya which have halted the loading of the first oil cargo have raised concerns that efforts to restart crude exports could be disrupted and are also supporting prices.

After slumping to multi-week lows on Friday amid worries returning supplies from Libya would add to the global supply glut, oil prices saw a nice rebound on Monday. Crude futures were up +1.7 percent on the day to $43.77/bbl.