Oil prices surge as United States equities soar

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Continued growth in US crude production, notably by shale-oil producers, also has contributed to worries about a growing glut worldwide.

While economic worries have weighed, the outlook is not as weak as in 2016 when a supply glut built up, because Opec this time is trying to prop up the market, Mr Jakob said.

United States west crude futures fell $1.07, or 2.35 percent, to reach $44.52 a barrel, up from the lowest level since September 2017 at $44.41 a barrel. The U.S. benchmark is down about 16 percent since the producer group announced the agreement. Asian securities exchanges withdrew again on Wednesday.

The producers' alliance, known as OPEC+, plans to lower output by 1.2 million barrels per day, of which OPEC's share is 800,000 bpd, next year, and some ministers have even suggested taking further action. The declines were led by Hess Corp., which lost 8.4 percent, the most in nearly three years, after Venezuelan forces temporarily halted ships working at a formation Hess and ExxonMobil are developing offshore Guyana.

"The planned cuts have been carefully studied, but if it doesn't work, we always have the option to hold an extraordinary OPEC meeting and we have done so in the past", Suhail Al Mazrouei, who is also OPEC president, said in Kuwait.

Investors globally anxious about economic slowdown amid higher US interest rates and the US-China trade dispute.

"I think there is a smidgen of over-expansion to the drawback connected to worldwide market fears", said Olivier Jakob, examiner at Petromatrix.

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Concerned that a new glut could form, OPEC and its allies including Russian Federation decided earlier this month to return to a policy of cutting production in 2019, unwinding a decision taken in June 018 to pump more oil.

"There are several bearish factors in oil markets, and the situation won't improve anytime soon".

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.

West Texas Intermediate crude for February delivery climbed $1.51/bbl to $44.04/bbl at 9:50 a.m. on the New York Mercantile Exchange. The contract slumped $3.06 to $42.53 on Monday.

Brent fell 11 per cent last week and hit its lowest since September 2017, while USA futures slid to their lowest since July 2017, bringing the decline in the two contracts to 35 per cent so far this quarter.

On London-based ICE Futures, the price of Brent crude oil to be delivered in February advanced by $4.86, to $55.29 a barrel.