Oil prices rebounded Monday morning as the Organization of Petroleum Exporting Countries (OPEC) reaffirmed its commitment to cut output.
West Texas Intermediate crude oil was rising by about 1% to $44.53, while Benchmark Brent crude was gaining by roughly 0.7% to $45.88 by 10 a.m. Monday.
At the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), OPEC Secretary General Mohammed Barkindo said on Monday that the cartel remains committed to the Algiers accord, adding that all 14 members are also committed to the implementation of a production cut plan.
The positive commentary helped boost oil prices on Monday morning, but the organization still has a lot to work out, like Iraq pushing for an exemption from the production deal. OPEC is looking to have a deal done by their Nov. 30 meeting in Vienna.
Meanwhile in the U.S., a new report from the Energy Information Administration (EIA) says domestic crude oil production in 2015 was the highest since 1972, reaching 9.42 million barrels per day (b/d). The highest production gains were in Texas, the Gulf of Mexico and North Dakota -- these three regions "accounted for 77% of the U.S. total increase," according to the EIA. The Lone Star state, which is where the booming Permian Basin business is mainly located, was the largest crude oil-producing state, with 3.46 million b/d in 2015, which represents an increase in production by 289,000 b/d.
This year, the Permian Basin will likely be a main source of production for the U.S., as the EIA reported on Oct. 17 that the region was the only area to see oil production increase in October and November.