Update from 2:15 p.m. EST

Crude oil Monday bounced off of a four-month low in a volatile session.

January's futures contract closed 30 cents higher at $41.01 in Nymex floor trading, having erased an earlier loss. At current levels, prices are down about 25% since hitting a record closing high of $55.17 on Oct. 26.

OPEC members meeting in Cairo agreed to a cut of 1 million barrels a day to the cartel's official production level of 27 million barrels a day, effective Jan. 1, but prices fell just the same. The cartel's members, however, are notorious for producing more than their individual quotas.

Previously, the cartel raised production on three separate occasions since July by a total of 2.5 million barrels a day, as it tried to cool the commodity's steep price appreciation.

The market's steep correction comes amid a resurgence in U.S. production following widespread disruption to Gulf of Mexico operations from Hurricane Ivan in September. Unusually warm weather and ample supplies of heating oil in the past couple weeks have also pressured prices.