Oil extends rally on prospects OPEC could act to counter low prices

Oil rose on Monday, extending a rally triggered last week by speculation that OPEC might agree to cut production to reduce a supply glut that has pushed prices to the lowest in over a decade.

Brent crude futures LCOc1, the global benchmark, were up 21 cents at $33.57 a barrel at 1428 GMT. U.S. futures CLc1 traded at $29.68 a barrel, up 24 cents on Friday's close. Trade is likely to be thinner than usual on Monday due to the U.S. Presidents Day holiday.

"Some traders still think about the chances of an OPEC plus Russia (production) cut and close their short positions," said Frank Klumpp, oil analyst at Stuttgart-based Landesbank Baden-Wuerttemberg.

The United Arab Emirates' energy minister said the Organization of the Petroleum Exporting Countries was willing to cooperate on an output cut, the Wall Street Journal reported last week.

And Nigeria's oil minister told Reuters the mood inside OPEC was shifting to a growing consensus that a decision must be reached on how to prop up prices. (by KAROLIN SCHAPS, Reuters)