Oil prices moved higher on Monday on market expectations that a cut in crude output may be extended and a global oil supply glut may shrink.

In commodities trading, the June contract for West Texas Intermediate settled at $48.85 US a barrel, up $1.01 on the day.

A wide group of oil-producing countries around the world has already cut their production in hopes of supporting the price of oil, and Russia and Saudi Arabia said they want to extend the cuts through the first three months of 2018.

The price of oil has swung sharply in recent years, from more than $100 US a barrel three years ago to less than $30 US last year, as concerns wax and wane that supplies will overwhelm demand.

Brent crude, the international standard, rose $1.23 to $52.16 US per barrel on Monday.

The rise in oil helped push stocks higher on North American equity markets.

The S&P/TSX Composite Index rose 91.59 points to finish at 15,629.47.

On Wall Street, the Dow Jones industrial average closed at 20,981.94, up 85.33 points, while the broader S&P 500 rose 11.42 points to hit a new record high close of 2,402.32. The Nasdaq composite index also hit a record high close, gaining 28.44 points to end at 6,149.67.

In currency trading, the Canadian dollar was up by 0.39 of a cent at 73.31 cents US.