U.S. crude oil prices rallied for a third straight day Monday, soaring more than 27 percent in the last three trading sessions to record their biggest three-day rally since 1990. Oil rose above $49 a barrel after data showed crude output was lower than previously expected, as the Energy Information Administration reported Monday.
The gains also helped global oil prices erase losses made in August, with crude snapping three straight months of declines. Oil has bounced back after posting six-and-a-half-year lows earlier this month as global markets try to recover losses following last week’s rout.
West Texas Intermediate crude, the benchmark for U.S. oil prices, jumped 8.8 percent to $49.20 per barrel for October delivery on the New York Mercantile Exchange. On the London ICE Futures Exchange, Brent crude, the global benchmark for oil prices, added 7.4 percent to $53.80.
The rise in oil prices helped boost the S&P 500 energy sector Monday, adding more than 1 percent. The gains were led by Consol Energy Inc. (NYSE:CNX), Chesapeake Energy Corporation (NYSE:CHK) and Newfield Exploration Co. (NYSE:NFX), which all added more than 5 percent.
U.S. crude oil production for the first six months of 2015 averaged 9.4 million barrels per day, while production in June came in at 9.3 million barrels per day, a decrease of approximately 100,000 barrels from the revised May figure, EIA estimates.
Crude also received a boost after the Organization of the Petroleum Exporting Countries said it “stands ready to talk to all other producers,” according to its monthly bulletin. “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 said in the report.
Separate data released Friday showed U.S. oil rigs rose by 1 from last week to 675, according to Baker Hughes data. However, oil rigs still remain down 900 from last year. In 2014, U.S. oil rigs totaled 1,564.
U.S. oil prices snapped an eighth straight weekly decline last week after recording their longest weekly losing streak in nearly 30 years during the prior week ending Aug. 21.