Updated from 2:06 a.m. EDT
Crude oil prices Monday snapped a three-day losing streak triggered by the Organization of Petroleum Exporting Countries' decision to increase production by as much as 2.5 million barrels a day.
The benchmark U.S. crude gained 17 cents, or 0.4%, to $38.66 a barrel, having touched a five-week low earlier in the session. Gasoline prices also turned around and closed higher adding about 2.3 cents, or 2%, to $1.204 a gallon.
OPEC last Thursday agreed to raise its official ceiling by 2 million barrels a day starting July 1, and, if necessary, another half a million barrels a day in August, following further review in July. Put together, that's an 11% increase over its current official quota of 23.5 million barrels a day, but the cartel readily admits members were previously producing more than 2 million barrels a day above that level.
Worries about supply amid strong global demand and terrorist attacks on oil-producing countries in the Persian Gulf had pushed prices to a string of recent highs, breaking $42 a barrel.
Other than Saudi Arabia, the world's largest oil exporter, most OPEC members do not have the existing capacity to boost production over an extended period of time. The Saudis say they can now pump more than 10 million barrels a day, if necessary.