New York (AFP) - Oil prices surged higher Monday as the US government lowered its domestic production estimate and OPEC said it was "ready to talk" to producers 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, its third straight winning session.In London, Brent crude for October delivery closed at $54.15 a barrel, up $4.10 (8.2 percent) from Friday's settlement.Over the past three winning sessions WTI has gained 27.5 percent and Brent is up 25.52 percent.Oil prices opened lower Monday but pulled out of negative territory after the Department of Energy said that US domestic production in June was 9.3 million barrels a day, about 100,000 barrels lower than its previous estimate.