Oil climbs 6.4% to reach highest level in over three weeks

Oil climbed to the highest level in more than three weeks amid speculation that crude producers will revive talks to stabilise prices. Futures gained as much as 2.8 per cent in New York.

Prices climbed 6.4 per cent last week as Saudi Arabia signalled it's prepared to discuss stabilising markets at informal Opec discussions next month. Russia is open to talks for a joint output freeze "if necessary", energy minister Alexander Novak told Saudi Arabian newspaper Asharq Al-Awsat.

Oil has rebounded more than 10 per cent since closing below $40 a barrel and tumbling into a bear market earlier this month. Saudi Arabian energy minister Khalid Al-Falih said last week that talks with members of Opec and other producers may result in action to stabilise the market.

"The market is richly rewarding this rhetoric, and as a result they're probably going to keep at it," said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy. "In practice, it's hard to see it having any real impact. They would be freezing at record highs in terms of production."

– (Bloomberg)