Supply cuts dominated by the Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC Russia, have also boosted prices.
“OPEC’s new production cuts have taken effect from the start of the year and market surveys of OPEC output show that major producers got started early,” said Emirates NBD bank in a note released on Sunday, according to a Reuters report.
OPEC oil supply fell in December by 460,000 barrels per day (bpd), to 32.68 million bpd, a Reuters survey found last week, led by cuts from top exporter Saudi Arabia.
Asian shares rose on Monday, as strong U.S. jobs data and hopes over easing trade tensions between the U.S. and China boosted sentiment.
The U.S. payrolls report showed 312,000 net new jobs were created in December, while wages rose at a brisk annual pace of 3.2 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3 percent on Monday.
On Wall Street, the Dow ended Friday with gains of 3.29 percent, while the S&P 500 jumped 3.43 percent and the Nasdaq 4.26 percent.
Middle East markets
Most markets in the region rose on Sunday, following a surge in oil prices and global markets.
Saudi Arabia’s index added 1.3 percent as Al Rajhi, the kingdom's second-largest lender by assets, jumped 5.1 percent amid heavy trade after it announced plans to increase capital to 25 billion riyals ($6.7 billion) from 16.25 billion riyals through distributing 7 bonus shares for every 13 shares owned.
Dubai’s index edged 0.2 percent higher as Dubai Islamic Bank added 1.4 percent, Emirates NBD gained 0.6 percent and Developer DAMAC Properties rose 1.3 percent.
In Abu Dhabi, the index rose 0.1 percent with First Abu Dhabi Bank up 0.6 percent and Dana Gas gaining 1.7 percent.
The Qatari index was mainly flat at 10,352 points, with Qatar National Bank (QNB) closing 0.8 percent higher and Qatar Insurance Co. rising 1.4 percent. Conglomerate Industries Qatar closed down 0.6 percent and Commercial Bank dropped 1.2 percent.
Egypt’s blue-chip index EGX30 added 0.6 percent, Kuwait’s index gained 0.7 percent, while Oman’s index rose 0.6 percent and Bahrain’s index gained 0.4 percent.
The dollar was weaker on Monday after analysts bet that the U.S. Federal Reserve would put its policy tightening on pause in 2019, following comments by Jerome Powel, the Fed Chair.
On Friday, Powell told the American Economic Association that the Fed is not on a preset path of interest rate hikes and that it will be sensitive to the downside risks the markets are pricing in.
The dollar index, which measures the greenback against a basket of six major currencies, stood at 96.12 early on Monday, down 0.07 percent.
Gold prices retreated early on Monday as global markets rose, following a recovery in risk appetite.
Spot gold had dropped about 0.1 percent to $1,284.05 per ounce by 0053 GMT.
U.S. gold futures were down about 0.1 percent at $1,285.10 per ounce.
(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)
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