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Oil rises on signs low prices crimping U.S. output though economic worries weigh

* Brent, WTI hover near lowest levels since Q3 2017

* OPEC+ to meet again if cuts not enough - UAE minister

* U.S. oil drillers add 10 rigs last week - Baker Hughes (Recasts with higher prices, adds comments)

SEOUL, Dec 24 (Reuters) - Oil prices rose more than 1percent on Monday on signs that the recent price plunge maystart crimping supply from the U.S., currently the world'sbiggest oil producer, though concerns about global economycontinues to weigh.

International benchmark Brent crude LCOc1 futures rose 60cents, or 1.1 percent, to $54.42 a barrel at 0408 GMT. Pricesclimbed to as high as $54.66.

U.S. West Texas Intermediate (WTI) crude futures CLc1 wereup 37 cents, or 0.8 percent, to $45.96 a barrel after earlierclimbing to as high as $46.24.

Crude prices rebounded from a sharp declines last week.Brent fell 11 percent for the week, dropping to its lowest sinceSeptember 2017 on Friday, while WTI also dropped 11 percent lastweek, its worst weekly performance since January 2016.

Both benchmarks down more than 35 percent from their recentpeaks in early October.

The price plunge has caused U.S. shale oil producers tocurtail drilling plans for next year.

The boom in U.S. shale output has boosted the country intothe top producer spot over traditional suppliers Saudi Arabiaand Russia. The industry is at the centre of U.S. PresidentDonald Trump's calls to boost the country's energy independence.

"In the short term, it doesn't seem oil prices would dropfurther because WTI has broken the $50 resistance level and U.S.President Trump would not want to see WTI falling further tosupport U.S. shale industry," said Kim Kwang-rae, a commodityanalyst at Samsung Futures in Seoul.

Still, the macroeconomic picture and its impact on oildemand continue to pressure prices. Global equity markets haveplunged amid concerns of slowing trade flows, especially withthe trade war between the U.S. and China, the world's twobiggest economies.

Equity markets in Asia were moderately higher on Monday,though trading was limited because of the Christmas holiday onDec. 25.

Furthermore, even with the signs of slowing U.S. supply,global production remains in excess of demand.

The Organization of Petroleum Exporting Countries (OPEC) andRussia agreed earlier this month to cut oil production by 1.2million barrels per day (bpd) starting in January to address thesupply issues.

Should they not be enough to balance the market, OPEC andits allies will hold an extraordinary meeting, the United ArabEmirate's energy minister Suhail al-Mazrouei said on Sunday.

"Oil ministers are already taking to the airwaves with a'price stability at all cost' mantra," said Stephen Innes, headof trading for Asia-Pacific at futures brokerage Oanda inSingapore.

Mazrouei said a joint OPEC and non-OPEC monitoring committeewould meet in Baku in late February or early March.

Adding to concerns about oversupply, the number of activeU.S. rigs for drilling oil rose by 10 in the week ended Dec. 21to 883, according to a report by General Electric Co'sGE.N Baker Hughes energy services firm.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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