Oil prices surge as USA equities soar

Oil producers to have extra meeting if output cuts 'not enough': UAE

Oil producers to have extra meeting if output cuts 'not enough': UAE

"US equity futures are trading a bit firmer this morning triggering some little buying interest in the oil markets", said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

The makers' partnership, known as OPEC+, plans to bring down yield by 1.2 million barrels for each day, of which OPEC's offer is 800,000 bpd, one year from now, and a few priests have even proposed making further move. On Wednesday, oil prices were mixed as the US benchmark recovered from sharp losses in the previous session. President Donald Trump said on Tuesday that a government shutdown could last until his demand for funds to build a US-Mexico border is met.

Separately, Jeff Yastine, a senior research analyst at Banyan Hill Publishing, said that down the road the crude oil market shows strength potential. "Some of the selling was overdone". That follows the United Arab Emirates energy minister's remarks signaling the producers could have an extraordinary Opec meeting and discuss additional curbs if needed.

The global benchmark Brent has declined about 12 percent since the Organization of Petroleum Exporting Countries and its allies including Russian Federation announced an agreement to cut output earlier this month amid investor skepticism that the reductions will be enough to balance supply and demand.

Broader financial markets have been under pressure on worries about a global economic slowdown amid higher USA interest rates and the U.S.

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Production growth in Texas' Permian Basin is also fueling the idea that the oil market will be oversupplied for a long time to come but other things need to be considered, he said. Brent crude is at its lowest level since August 17, 2017.

Futures declined as much as 3.3 percent in NY as USA stocks tumbled to the lowest in more than a year, with investors assessing the threat to the economy from a government shutdown.

Brent for February settlement dipped $1.39 to $52.43 a barrel on London's ICE Futures Europe exchange.

Global crude oil prices, after having been benign and lending a helping hand to India's fisc, turned around in 2018 to spook the fiscal math.

“I think that during the first half, due to joint efforts, which were confirmed by the OPEC and non-OPEC countries this December, the situation will be more stable, more balanced, ” Novak said in a Christmas interview on Rossiya-24 TV, according to Reuters .

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