Oil rises above $45.00 a barrel on hopes for output freeze

Oil prices extended gains during the New York session, with WTI reaching 3-week highs, amid speculations about potential producers’ collective action to freeze output and support prices.

West Texas Intermediate oil for September delivery rose 75 cents, or 1.65%, to trade at $45.23 a barrel on the New York Mercantile Exchange, after hitting a session high of $45.41, a level last seen July 21.

Saudi Arabia’s energy minister, Khalid al-Falih, said last Thursday the Kingdom is open to discuss possible action to stabilize the market with members of the OPEC and other producers at a meeting next month.

Later this week, inventories data could trigger directional moves in oil prices, with American Petroleum Institute (API) data due on Tuesday and US Energy Information Administration (EIA) report on Wednesday.