Rebound in oil prices gives world stocks a lift in holiday trade

A rebound in oil prices on concerns of tight supply gave world stocks a lift on Monday in a session hit by a U.S. holiday.

Oil got a reprieve as lower output from the Organization of the Petroleum Exporting Countries (OPEC), unrest in Libya and sanctions on Russia outweighed fears of a global recession.

“Oil fundamentals remain supportive,” said Warren Patterson, head of commodity research at ING.

“Clearly OPEC is still struggling to hit its agreed output levels,”

Output from the 10 members of OPEC in June fell 100,000 barrels per day (bpd) to 28.52 million bpd, off their pledged increase of about 275,000 bpd, a Reuters survey showed on Friday.

Brent crude LCOc1 steadied at $111.59, while U.S. crude CLc1 eased 12 cents to $108.32 per barrel. Both fell over $1 in early trade.

MSCI’s world equity index .MIWD00000PUS gained 0.25% and MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.14%, after losing 1.8% last week.

Global equities hit 18-month lows last month on anxiety about rising inflation and interest rates, but have since made minor gains.

“Some markets are starting to find their footing but there’s a lot of volatility right now,” said Sebastien Galy, senior macro strategist at Nordea Asset Management, pointing to risks from the release of key U.S. non-farm payrolls data later this week.

European stocks .STOXX rallied 0.7% and Britain’s FTSE .FTSE rose over 1%, helped by gains in oil and gas companies. .EU.L

Chinese blue chips .CSI300 closed 0.7% higher, boosted by a 4.65% surge in Chinese healthcare stocks .CSIHCSI. Cities in eastern China tightened COVID-19 curbs on Sunday amid new coronavirus clusters.

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