LONDON: Oil prices inched up on Tuesday as tension around Iran’s seizure of a South Korean vessel simmered and after it emerged that the OPEC+ group is studying a possible production cut in February, according to a document.
Brent crude futures for March rose 35 cents to $51.44 a barrel by 0947 GMT, while U.S. West Texas Intermediate crude for February was at $48.04 a barrel, up 42 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 while Russia led calls for higher production, citing recovering demand.
According to an OPEC document dated Jan. 4, the group is studying a 500,000 barrel per day output cut for February, and three other scenarios which include stable production or an increase of 500,000 bpd.
OPEC+ are due to resume talks at 1430 GMT.
Tensions around OPEC…