Oil surged to settle over $54 a barrel on Monday on expectations that OPEC will cut output again and as stock markets rallied off the U.S. government’s plan to rescue U.S. bank Citigroup.

OPEC president Chakib Khelil said a further output cut of more than 1 million barrels per day would be necessary to support the oil market in its current state.

U.S. light, sweet crude rose $4.57, or 9.15 percent, to settle at $54.50. The contract had dipped to a 3-1/2-year low of $48.25 on Friday.

London Brent crude was up more than $4 to above $53.

Source: CNBC