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Oil rebounded from the week's lows to stabilize above $50 a barrel on Thursday as market watchers focused on a weekend meeting of OPEC and non-OPEC producers that may result in an agreement to cut crude output further. Brent and U.S. oil prices gained support earlier from a slightly weaker dollar, but the U.S. currency turned positive as the euro fell on the European Central Bank's decision to extend but reduce its bond-buying program. Oil producers meet in Vienna on Saturday to see whether those outside the Organization of the Petroleum Exporting Countries will cut production to help erase a global supply glut that has depressed prices for more than two years.
By Balazs Koranyi and Francesco Canepa FRANKFURT (Reuters) - The European Central Bank caught financial markets off-guard on Thursday by announcing it would trim asset buys from April next year, even as it reserved the right to increase purchases again if the euro zone's recovery faltered. The ECB said it would cut monthly purchases to 60 billion euros from the current 80 billion euros but extend the buys until the end of 2017. Markets had expected purchases to stay at 80 billion but only for 6 more months, suggesting a compromise between hawks and doves in the Governing Council.