Oil surges 8% after steep slide; growth fears still weigh

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

U.S. crude oil plunges 6.7% to $42.53/bbl, weakest since mid-2017

"U.S. 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 global benchmark has declined about 16 percent since 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.

USA 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. EOG Resources (EOG), a big USA shale producer, was flat.

Stock market volatility is also pressuring oil prices.

Should that fail to balance the market, OPEC and its allies will hold an extraordinary meeting, United Arab Emirates Energy Minister Suhail al-Mazrouei said on Sunday.

"The demand outlook continues to be called into question". Yet, crude's descent has deepened as investors doubt the reductions will be sufficient to dent supply levels, with US crude output still above 11 million barrels a day on a weekly basis. A recovery in the USA stock markets could help drive prices higher because of a shift in investor sentiment, but these gains are likely to be limited by rising concerns over a global economic slowdown.

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Elsewhere in the energy complex, January natural gas NGF19, -0.85% was up 2.19% at $3.5430 per million British thermal units, reducing part of its monthly drop, still at over 23%.

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

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

Brent crude LCOc1, the global benchmark, was up 70 cents at $51.17 at 1120 GMT. The U.S. benchmark on Monday finished at the lowest for a front-month contract since July 21, 2017, and remains down roughly 9.25% so far this month, according to Dow Jones Market Data. They had fallen 6.2 percent to $50.47 a barrel in the previous session - the lowest since August 2017.

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

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