Oil prices rose Monday on speculation that Organization of the Petroleum Exporting Countries (“OPEC”) might be willing to agree to output cuts to shrink the global supply of crude oil. Prices were trading at $48.59, up more than 7% mid-afternoon.
OPEC stated Monday that it “stands ready to talk to all other producers.” The report raised expectations that it might change its stance and be willing to cut output.
OPEC’s statement regarding working with other world producers is limited in application because the producers in the United States would be precluded from entering any such price-fixing scheme due to federal anti-trust laws. However, other sovereign countries could generally enter such agreements. On Monday, Russia also indicated its willingness to discuss “possible mutual steps” to help stabilize oil prices worldwide.