Oil Producers To Cut Oil Output By 2-3% To Boost Prices

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On Wednesday, oil prices were mixed as the USA benchmark recovered from sharp losses in the previous session. Satoru Yoshida added that "oil prices could rise if OPEC+ make announcements about specific measures". It was unclear whether follow-through buying would push prices higher again once trading desks are more fully staffed after the new year begins.

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

"The last few days of selling pressure in the crude markets has felt less fundamentally driven and more a function of the overall market meltdown as increased equity volatility and growing macro concerns have weighed on a number of asset classes", analysts at Tudor Pickering Holt & Co. said in research note Wednesday. The sell-off "doesn't signal strength of confidence in demand, but we still went too far too quick".

The US dollar index was modestly higher as well, after the currency hit fresh lows before Christmas.

USA crude was up 74 cents at $43.27.

The barrel of WTI loses more than $5 last week. They had fallen 6.2 percent to $50.47 a barrel in the previous session - the lowest since August 2017.

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The U.S. benchmark crude is on track for a 13 percent decline this month. USA crude was up 10 per cent to US$46.80 a barrel, while Brent rose 9.2 per cent to US$55.11 a barrel. The counter recorded a volume of almost 2.1 million shares today, as compared to average daily volume of about 1.3 million shares.

Crude oil prices plunged more than 6 per cent to the lowest level in more than a year on Monday, pulling back sharply late in the session as fears of an economic slowdown rattled the market.

The Organization of the Petroleum Exporting Countries (OPEC) may hold an extraordinary meeting if the oil market fails to get balanced, according to UAE Energy Minister Suhail al-Mazrouei.

The deal, signed on December 7 in Vienna, stipulates an output cut 1.2 million barrels per day during the first six months of 2019, with OPEC members pledging a cut of 800,000 barrels per day, while non-OPEC producers pledged to reduce their output by 400,000 barrels per day. The U.A.E.'s energy minister, while stressing that the 1.2-million barrel-a-day cut will clear an inventory buildup in the first half, hinted additional curbs could be discussed.

Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, said some buying interest had returned after firmer trading in USA equity futures.

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