Crude oil prices finished with gains of more than 2% as traders are more optimistic that the Organization of Petroleum Exporting Countries, or OPEC, will deliver a deal to cut production by Wednesday.
Benchmark Brent crude closed at $48.25, up 2.1%, while West Texas Intermediate crude closed with gains of 2.2%, at $47.08.
Prices jumped Monday morning as Iraq's oil minister Jabbar al-Luaibi said the country would cooperate with the group to reach an agreement that is "acceptable to all," adding that he is "optimistic" the cartel can get a deal done, according to Reuters.
"A deal may very well be likely given the lack of one would signal OPEC's diminished credibility and that several countries and OPEC officials have their reputations on the line," said Herman Wang, OPEC specialist for S&P Global Platts. "Whether the deal is merely face-saving or durable and significant is the key question."
Saudi Arabia shook traders confidence over the weekend when it suggested OPEC didn't need to reduce output to rebalance the oil market as increasing demand over 2017 will serve to drain a supply glut that has weighed on prices.
"We expect demand to recover in 2017, then prices will stabilize, and this will happen without an intervention from OPEC," said Saudi Arabia's energy minister Al-Falih, according to quotes appearing Sunday in Saudi newspaper Asharq al-Awsat. "We don't have a single path, which is to cut production at the OPEC meeting, we can also depend on recovery in consumption, especially from the U.S."