London: Oil leapt 6 per cent on Monday to more than $43 a barrel, as a rebound in global equity markets and further evidence of supply cuts by top exporter Saudi Arabia helped the market break a six-session losing streak.
Prices dropped 25 per cent last week, their biggest weekly fall in nearly 18 years, depressed by the world economic outlook.
US crude for January delivery was up $2.56 to $43.37 a barrel by 1003 GMT. It fell more than 6 per cent on Friday to close at $40.81, its lowest since December 2004.
London Brent crude rose $2.56 to $42.30 a barrel.
"Prices are higher on account of a short-covering bounce from extremely oversold conditions," Edward Meir, of futures broker MF Global, said.
"OPEC's meeting is nine days away, meaning that we could see some strengthening leading into the meeting," he said.
Oil has fallen more than $100 a barrel from a record peak above $147 in July, as the credit crisis has started to hurt the wider economy and shrink demand for fuel.
Members of the Organization of the Petroleum Exporting Countries have called for more supply cuts when the producer group meets on Dec. 17 in Algeria.
