Oil has changed little as investors await OPEC + decision

SINGAPORE (Reuters) – Oil prices were little changed on Tuesday after OPEC and allied producers, including Russia, continued stalled February production talks, as fuel demand concerns persisted amid new COVID-19 lockdowns.

Brent futures for March rose 8 cents, or 0.2%, to $ 51.17 a barrel at 0206 GMT, while US West Texas Intermediate crude for February was at $ 47.74 a barrel , up 12 cents, or 0.3%.

Both contracts fell more than 1% on Monday after the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC +, failed to agree on production levels for February oil.

Saudi Arabia opposed pumping more amid new lockdowns, while Russia called for higher production, citing a pickup in demand.

OPEC + will resume discussions on Tuesday.

“The OPEC + drama is of course driving the latest oil price drop, but the heaviest hand is probably the still unknown impact of the new strain on economic activity and travel – two factors which justify a late correction in mini-prices after the winter break, ”said Louise Dickson, oil markets analyst at Rystad Energy.

Rising tensions in the Middle East have supported oil prices.

The Iranian Revolutionary Guard Corps on Monday seized a South Korean-flagged tanker in Gulf waters and arrested its crew amid tensions between Tehran and Seoul over Iranian funds frozen in South Korean banks due to US sanctions.