REFILE-UPDATE 1-Oil prices rise on expectations that OPEC+ likely to maintain output

(Corrects to 2020 in last paragraph)
* OPEC+ set for meeting to discuss Feb production levels
* Crude demand to rise to 95.9 million bpd in 2021 -OPEC

By Florence Tan
SINGAPORE, Jan 4 (Reuters) - Oil prices rose on Monday on
expectations that OPEC and allied producers may cap output at
current levels in February at a meeting later in the day as the
coronavirus pandemic keeps worries about first-half demand
elevated.
Brent crude LCOc1 for March was at $52.42 a barrel, up 62
cents or 1.2%, by 0348 GMT while U.S. West Texas Intermediate
crude CLc1 for February rose 55 cents, or 1.1%, to $49.07 a
barrel.
Broader macro momentum trends including a weaker dollar and
investors positioning for a recovery in the oil sector this year
could be supporting oil prices, Energy Aspects analyst Virendra
Chauhan said.
"Maybe there is some positive sentiment from OPEC+ looking
to constrain supply in light of the virus rearing its ugly head
in the west," he added.
Mohammad Barkindo, Secretary General of the Organization of
the Petroleum Exporting Countries (OPEC), said on Sunday that
while crude demand is expected to rise by 5.9 million barrels
per day (bpd) to 95.9 million bpd this year, the group sees
plenty of downside demand risks in the first half of 2021.
"We are only beginning to emerge from a year of deep
investment cuts, huge job losses and the worst crude oil demand
destruction on record," he said.
Prices ended 2020 about 20% below 2019's average, still
recovering from the impact of global economic lockdown measures
imposed to battle COVID-19 that slashed fuel demand, even though
the world's major producers agreed record output cuts through
the year.
OPEC and allied producers including Russia, a grouping known
as OPEC+, decided at a meeting last month to raise output by
500,000 barrels per day in January, anticipating a boost in
demand, and agreed to meet every month to review production.
Analysts from Energy Aspects and RBC Capital said OPEC+ was
likely to maintain January production levels in February.
"We think the producer group will opt to forgo any further
production increases for February with COVID-19 cases continuing
to climb and the slower-than-expected vaccine rollout," RBC
Capital's Helima Croft said.
In the United States, crude oil production stayed under
pressure from weak prices and tepid demand, down more than 2
million barrels per day (bpd) in October from earlier in 2020, a
government report showed on Jan. 1.