Oil rises amidst signs of curbing US production
Oil markets rose on Monday on signs that recent price declines could start curbing supply to the United States, now the biggest crude producer, despite continued pressure from concerns about the global economy.
London Brent crude <CLc1> was up 30 cents, or 0.56 percent, at $ 54.12 a barrel by 0744 GMT, after jumping to $ 54.66 a barrel.
US WTI crude futures rose 15 cents, or 0.33 percent, to $ 45.74 a barrel. Crude was up to $ 46.24 earlier.
Crude prices recovered from recent sharp declines, with Brent falling 11 percent over the week to its lowest level since September 2017 on Friday, and US crude fell 11 percent last week, its weakest weekly performance since January 2016.
The benchmark crude fell more than 35 percent from its peak in early October.
The fall in prices prompted US rock producers to cut back on their drilling plans next year.
The surge in US rock production supported the country to rank first among the world's oil producers, ahead of Saudi Arabia and Russia.
The macroeconomic picture and its impact on oil demand continue to put pressure on prices. Global stock markets fell amid fears of a slowdown in trade flows, especially in the shadow of the US-China trade war, the world's two biggest economies.
Despite signs of a slowdown in US supplies, global production is still outpacing demand.
The Organization of the Petroleum Exporting Countries (OPEC) and Russia agreed earlier this month to cut output by 1.2 million bpd starting in January to curb supply.
UAE Energy Minister Suhail al-Mazroui said on Sunday that OPEC and its allies would hold an extraordinary meeting if the cuts did not stop to balance the market.
Al-Mazroui said that the OPEC Joint Control Committee and independent producers would meet in Baku in Azerbaijan in late February or early March.
Concerns over supply overshadowed a report by Baker Hughes Energy Services, which showed a rise in the number of oil drilling platforms operating in the United States by 10 platforms in the week ending December 21 to 883 diggers.