Michael Galvis: Oil Prices Rise Due To OPEC Cuts.

NEW YORK (CNNMoney.com) — Oil prices climbed towards $42 a barrel on Monday, after the Organization of Petroleum Exporting Countries said it continued to cut crude supply and hinted that more cuts may be coming.

U.S. crude for March delivery rose $1.34 to $41.51 a barrel on the New York Mercantile Exchange.

Abdullah al-Badri, secretary-general of OPEC, told reporters that about 80% of the previously agreed-upon cuts were complete. In December, the cartel’s member nations decided to cut 4.2 million barrels a day in oil production, but some countries that rely on oil exports have been reluctant to trim supply.

Analysts said that OPEC’s aim was to stabilize the price of oil, which has leveled off since mid-December, but is down sharply from last year’s all-time high above $147 a barrel. Still, al-Badri said that the group may take more action at its meeting scheduled for March 15.

“OPEC is the catalyst for investors to come back into the market,” said James Cordier, founder of brokerage OptionSellers.com. But oil prices remain pressured by weak demand and a supply glut in the United States, he added.

“I think we’ll continue to trade in a sideways direction,” Cordier said.

The oil market is also focused on the potential benefits of a massive economic stimulus plan being debated in Washington.

Senate lawmakers are set to vote on a key measure Monday to end debate on the $827 billion plan, which could face a final vote Tuesday. The package is aimed at boosting the economy by funding infrastructure spending and lowering taxes.

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