Oil prices rebounded on Thursday after opening the year down more than 9%, the worst yearly start in over three decades, as investors took advantage of the decline to buy futures on expectations long-term fuel demand will remain steady.

By attempting to shield consumers from high prices, governments will only encourage consumption via lower prices, prolonging the energy crisis.

European and Asian shares rose on Wednesday thanks to positive news about inflation and China's strict anti-COVID measures, while the dollar backpedalled as investors await minutes from the Federal Reserve's most recent meeting.

Oil fell sharply on Wednesday after slumping in the previous session, weighed down by concerns about weak demand due to the state of the global economy and China's rising COVID cases.

Global stocks rallied Tuesday thanks to a New Year boost, which is clouded however by rising interest rates, recession worries and Russia's war on Ukraine.

Oil prices edged lower on Tuesday in volatile trade as weak demand data from China and a gloomy economic outlook weighed.

Investors were rocked last year by Russia's invasion of Ukraine in late February, soaring inflation and rising interest rates.

World stocks were steady and U.S. stock index futures indicated a lower open on Wall Street on the last trading day of 2022, but equities are on course for a 20% drop over a year marred by high inflation and war in Europe.

Oil prices edged up on Friday and were on track to post a second straight annual gain, albeit a meagre one, in a year marked by tight supplies due to the Ukraine conflict, a strong dollar and weak demand from the world's top crude importer China.

Stocks sank in Asia and wavered in Europe on Thursday, with sentiment clouded by China's Covid surge.

Stock markets diverged on Wednesday as investors looked for a traditional "Santa Claus rally" to close the year.

Oil prices fell on Wednesday as concerns about an upsurge in COVID-19 cases in China, the world's top oil importer, outweighed expectations easing pandemic restrictions would lead to economic recovery and growth in demand for fuel.

President Vladimir Putin on Tuesday delivered Russia's long-awaited response to a Western price cap, signing a decree that bans the supply of crude oil and oil products from Feb.

Russia retaliated on Tuesday against a price cap on its oil imposed by Western countries, while its forces were involved in heavy fighting around the eastern Ukrainian city of Bakhmut.

European and Asian markets advanced on Tuesday after China said it would end quarantines for overseas arrivals, spurring hopes for the revival of the world's second-largest economy.

Russia's budget deficit could be wider than a planned 2% of GDP in 2023 as an oil price cap squeezes export income, Finance Minister Anton Siluanov said, an extra fiscal hurdle for Moscow as it spends heavily on its military activities in Ukraine.

Oil prices rose in light trade on Tuesday on concerns that winter storms across the United States are affecting logistics and production of petroleum products and shale oil.

A short-lived bounce for global stocks faded on Thursday, as easing U.S. inflation expectations were overshadowed by fears about an economic downturn.

Portugal's parliament on Tuesday approved a 33% tax on the windfall profits that energy companies and food retailers may be bringing in with inflation at a near three-decade high.

The United States has become a global crude oil exporting power over the last few years, but exports have not exceeded its imports since World War II. That could change next year.

EU countries are worried that they will have a hard time filling gas storage tanks in time for next winter.

Asia's stockmarkets made a wobbly start to the final full trading week of 2022, with the prospect of interest rates rising further next year taking the edge off festive cheer.

Oil prices reclaimed ground on Monday after tumbling more than $2 a barrel in the previous session as optimism from China's reopening and oil demand recovery outweighed concerns of a global recession.

Global stocks eked out small gains and the dollar slipped on Wednesday on hopes that central banks will stop raising interest rates in early 2023 following the latest U.S.

Oil prices rose more than 1% in early Asian trade on Monday as a key Canada-United States crude pipeline stayed shut while Russian President Vladimir Putin threatened to cut production in retaliation against a Western price cap on Russian oil exports.

Oil prices are set to post their biggest weekly drop in months, since traders expect it will be months before the benefits of China easing COVID controls feeds through to demand.

European motorists could find Russian diesel in their tanks even after bans take effect because regulators lack tools to trace the origin of fuel when it has passed through other countries.

Major stock markets suffered more selling Wednesday on growing fears that Federal Reserve monetary tightening will tip the US economy into recession.

The market for old oil tankers is booming, and it's all down to efforts by Western nations to curb trade in Russian crude.

The price cap on Russian oil agreed by the EU, G7 and Australia came into force on Monday. It aims to restrict Russia's revenue as punishment for its invasion of Ukraine, while making sure Moscow keeps supplying the global market.