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Oil little changed as investors await OPEC+ decision

Published 01/05/2021, 10:26 AM
Updated 01/05/2021, 10:30 AM
© Reuters.
LCO
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CL
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* OPEC+ to resume talks on February output on Tuesday
* Iran seizes S. Korean-flagged chemical tanker

By Florence Tan
SINGAPORE, Jan 5 (Reuters) - Oil prices were little changed
on Tuesday after OPEC and allied producers, including Russia,
continued deadlocked talks on February output while fuel demand
concerns lingered on amid new COVID-19 lockdowns.
Brent crude futures LCOc1 for March rose 8 cents, or 0.2%,
to $51.17 a barrel by 0206 GMT, while U.S. West Texas
Intermediate crude CLc1 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 February's
oil output levels.
Saudi Arabia argued against pumping more because of new
lockdowns while Russia led calls for higher production, citing
recovering demand.
OPEC+ will resume talks on Tuesday.
"OPEC+ drama is of course steering the latest oil price
downgrade, but the heavier hand is likely the still unknown
impact of the new strain on economic activity and travel - both
factors that warrant a belated mini-price correction after the
winter holidays," said Louise Dickson, oil markets analyst at
Rystad Energy.
Rising tensions in the Middle East supported oil prices.
Iran's Revolutionary Guards Corps on Monday seized a South
Korean-flagged tanker in Gulf waters and detained its crew amid
tensions between Tehran and Seoul over Iranian funds frozen in
South Korean banks due to U.S. sanctions.

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