US crude oil closed nearly nine percent higher Monday as the government lowered its domestic crude production estimate and OPEC signaled concern about multi-year low prices.

US benchmark West Texas Intermediate for October delivery jumped $3.98 (8.8 percent) to $49.20 a barrel on the New York Mercantile Exchange. It had rebounded more than 11 percent over the five previous sessions, its biggest increase in four and a half years.