Oil prices rise as equities rally, Libyan supply outage continues

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A steep increase in the pace of crude supply growth this year, especially in the world's three largest producers - the United States, Saudi Arabia and Russian Federation - has made a number of analysts wary about the prospect of demand being sufficient to mop up extra oil.

International Brent crude oil futures LCOc1 were at $60 per barrel at 0746 GMT, up 3 cents from their last close.

The world's leading oil cartel OPEC reached a deal with non-OPEC oil producers last week in Vienna to curtail the daily output of crude, meant to help stop oil prices from sliding further downhill that began in October.

"Recently, due to the political and economic factors, the price of oil has dropped, and the process has got a continuous character", Shahbazov said on December 7 according to Sputnik.

Russian Federation plans to cut its oil output by 50,000 to 60,000 bpd in January, its energy minister said on Tuesday, much less than its target under a global production deal reached last week.

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Crude oil, along with natural gas, is Azerbaijan's main export.

Despite Friday's OPEC-led decision to trim output by 1.2 million barrels per day starting in January, overall sentiment remains a little bearish as traders cast doubts that the planned supply cuts will be enough to trim supply and stabilize prices. Brent crude is down almost 30 percent from its October highs of more than $86.

West Texas Intermediate crude weakness returned as concerns for slower global growth stemmed from soft Chinese data. Crude futures pared gains as stocks fell. Richard Robinson, manager of Ashburton Global Energy Fund, believes the current dip is "transient" and that oil will recover to between $70 and $80 in the next three months, he wrote in a note earlier this month.

"This is a major step forward", said United Arab Emirates' Energy Minister Suhail Mohamed al-Mazrouei, who is also President of the OPEC Conference. The Kingdom's production in early November probably hit the highest on record, on the back of high customer requests made in early October when the market feared a hefty loss of Iranian supply last month. WTI was at $51.55, up roughly half a percent.

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