Oil prices rallied on world markets Monday amid an International Energy Agency report that the Organization of Petroleum Exporting Countries throttled back its oil production by more than 1 million barrels a day in January.
Analysts said prices also were buoyed by the Energy Department's revised forecast that oil demand in the United States, the largest oil-consuming nation, will rise 0.8% to 16.66 million barrels a day this year from the previous estimate of 16.51 million barrels a day.
On the New York Mercantile Exchange, West Texas Intermediate, the benchmark U.S. crude, climbed 38 cents to $17.66 a barrel for immediate delivery.
On the U.S. Gulf Coast spot market, West Texas Intermediate added 35 cents to $17.45 a barrel.
The International Energy Agency in Paris said OPEC oil production plummeted to 17 million barrels a day in January from 18.3 million barrels a day in December, primarily because the cartel's Persian Gulf members turned down their taps.