* OPEC+ panel sees weaker oil demand in 2021
* OPEC+ weighs oil cut extension
* U.S. Fed will "support the recovery for as long as it
takes"
* Europe tightens coronavirus restrictions
* Vaccine offers longer term support
* Coming Up: U.S. crude stockpiles from API at 4:30 p.m. ET
(Adds settlement prices, Fed comments on supporting a U.S.
recovery)
By Scott DiSavino
NEW YORK, Nov 17 (Reuters) - Oil prices were little changed
on Tuesday as worries that lockdowns to fight a new surge in
coronavirus cases could hit short-term demand offset hopes for a
vaccine and the possibility of tighter OPEC+ supply policies.
Brent futures LCOc1 fell 7 cents, or 0.2%, to settle at
$43.75 a barrel, while U.S. crude CLc1 gained 9 cents, or
0.2%, to settle at $41.43.
The oil market pared earlier losses in the last 15 minutes
of trade after U.S. Federal Reserve Chair Jerome Powell said the
Fed was committed to "using all of our tools to support the
recovery for as long as it takes until the job is well and truly
done." Those price moves came ahead of U.S. data from the American
Petroleum Institute, an industry group, later Tuesday that is
expected to show crude inventories USOILC=ECI rose 1.7 million
barrels last week after gaining 4.3 million barrels in the prior
week, according to a Reuters poll. EIA/S API/S ENERGYUSA
ENERGYAPI
On Monday, Brent closed at a 10-week high following Moderna
Inc's MRNA.O announcement that its coronavirus vaccine was
94.5% effective. That followed similar news from Pfizer Inc
PFE.N last week.
But the short-term economic outlook remains hazy with
several European nations tightening restrictions as coronavirus
cases increase. To tackle weaker energy demand amid a wave of new
coronavirus cases, Saudi Arabia called on fellow OPEC+ members
to be flexible in responding to oil market needs as it builds
the case for a tighter production policy in 2021. OPEC+, which groups the Organization of the Petroleum
Exporting Countries (OPEC), Russia and others, lowered its
outlook on oil demand growth for 2021, according to a
confidential document seen by Reuters. An option gaining support among OPEC+ nations is to keep the
existing cuts of 7.7 million barrels per day (bpd) for a further
three to six months, sources said, rather than tapering the
reduction to 5.7 million bpd in January.
"It's widely expected OPEC+ will push back on plans to
increase production ... in January but with the Pfizer and
Moderna announcements pushing oil back above $40, there may not
be the same support there as there was just over two weeks ago,"
said Craig Erlam, senior analyst at OANDA.
OPEC+ held a ministerial committee meeting on Tuesday that
made no formal recommendation. The group will hold a full
meeting on Nov. 30-Dec. 1.
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OPEC+ Scenarios and Impact on Oil Inventories https://tmsnrt.rs/3pCSOLa
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