Oil prices rose about 3 percent on Monday, as OPEC+ members agreed to a small production cut of 100,000 barrels per day to bolster prices.
Brent crude futures for November delivery settled $2.72 higher at $95.74 a barrel, a 2.92 percent gain.
Prices had climbed nearly $4 earlier in the session, but were tamed by comments from the White House that United States President Joe Biden was committed to taking all steps necessary to shore up energy supplies and lower prices.
US crude rose $2 to $88.85 per barrel, a 2.3 percent rise after a 0.3 percent gain in the previous session, in thin volumes during the US Labor Day holiday.
The 100,000 barrels per day (bpd) reduction by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, amounts to only 0.1 percent of global demand. The group also agreed they could meet any time to adjust production before the next scheduled meeting on October 5.
“It’s the symbolic message the group wants to send to the markets more so than anything,” said Oanda analyst Craig Erlam, adding that the 100,000 bpd raise last month by OPEC+ was not seen as a big deal.
“What we’ve probably seen from the markets was pricing in most of the worst-case scenario,” Erlam added.
Top OPEC producer Saudi Arabia last month flagged the possibility of output cuts to address what it sees as exaggerated oil price declines.
Russian Deputy Prime Minister Alexander Novak said expectations of weaker global economic growth were behind a decision by Moscow and its OPEC allies to cut oil output.