Shell Oil's Pioneer Oil Rig in Port Angeles, Washington, on May 12, 2015.
Jason Redmond | Reuters
Oil prices rose on Monday after Saudi Arabia announced that producer club OPEC and Russia were expected to hold back on their deliveries, and as relief that the US and Mexico had averted a trade war that would have damaged the global economy.
The previous month's Brent crude oil futures, the international oil price benchmark, were trading at $ 63.71
US West Texas Intermediate (WTI) crude oil futures were $ 54.43 a barrel, 44 cents or 0.8% above their last settlement.
Traders said crude oil prices rose on Friday on statements made by the de facto leader of OPEC, Saudi Arabia, that the group was close to agreeing on longer supply cuts.
"With a production cutback extension now more than likely, it is likely to boost the price of oil," said Stephen Innes, Managing Partner, Vanguard Markets.
The Organization of Petroleum Exporting Countries (OPEC) and some non-members, including Russia, known as OPEC +, have withheld deliveries since the beginning of the year to support prices.
"Even though the Mexican stalemate is averted and no damaging shockwaves are expected from the G20 meeting this weekend, risk assets should open with a rebound in their move and the oil could be traded favorably as WTI and Brent broaden the scope Risk environment continues to be high, "Innes said.
Stock markets rebounded on Monday after an agreement between the United States and Mexico to combat illegal immigration from Central America ended a customs war between neighbors late last week.