|
Brent crude futures for March rose 96 cents to $52.05 a barrel
by 1206 GMT, while U.S. West Texas Intermediate crude for
February was at $48.53 a barrel, up 91 cents.
Both contracts fell more than 1% on Monday after the
Organization of the Petroleum Exporting Countries (OPEC) and its
allies, known as OPEC+, failed to agree on changes to February's
oil output.
Saudi Arabia argued against pumping more because of new
lockdowns that are likely to limit demand, while Russia led
calls for higher production, citing recovering consumption.
An OPEC document dated Jan. 4, showed the group was studying a
500,000 barrel per day (bpd) cut for February, and other
scenarios that include stable production or an increase of
500,000 bpd.
"It is no secret that the bullish kick which crude markets have
received through much of the last quarter (crude rose almost 30%
in Q4-2020) and again this morning is supported by a
particularly hands-on approach from OPEC+ to tighten crude
markets and bring inventories lower through 2021," JBC Energy
said in a note.
OPEC+ is due to resume talks at 1430 GMT.
Tensions around OPEC member Iran's seizure of a South Korean
vessel continued, as Iran said the Asian country owed it $7
billion.
For a Factbox on the importance of Gulf waters on oil shipping
click.
More bearishly, given the implications for fuel demand, England
began a new lockdown on Monday as its coronavirus cases surged.
"Near-term demand growth is stalling due to the resurgence of
COVID-19 across North America, Europe and the Middle East and is
likely set for deeper declines over the next several months,"
Fitch Solutions said, adding that Brent is expected to average
$53 a barrel this year.
(Additional reporting by Shadia Nasralla and Florence Tan;
editing by Barbara Lewis)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
