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UPDATE 7-Oil steady before OPEC+ talks on supply amid economic recovery

Published 02/03/2021, 06:12
Updated 02/03/2021, 19:06
© Reuters.

© Reuters.

* OPEC+ meets on Thursday to discuss output
* OPEC secretary general sees last year's headwinds easing
* Germany to start easing some coronavirus restrictions next
week
* Oil prices rallied last week to highest since January 2020

(New throughout, updates prices, market activity and comments)
By Scott DiSavino
NEW YORK, March 2 (Reuters) - Oil prices were little changed
on Tuesday before this week's OPEC+ meeting, with producers in
the group expected to ease supply curbs as economies start to
recover from the coronavirus crisis.
OPEC Secretary General Mohammad Barkindo said the outlook
for oil demand was looking more positive, particularly in Asia.
Brent LCOc1 futures rose 19 cents, or 0.3%, to $63.88 a
barrel by 12:49 p.m. EST (1749 GMT). U.S. West Texas
Intermediate (WTI) crude CLc1 rose 26 cents, or 0.4%, to
$60.90.
Both Brent and WTI fell over $1 a barrel in early trade to
one-week lows. Last week, both touched their highest since
January 2020. The rally faded on expectations the Organization
of the Petroleum Exporting Countries and allies in the group
known as OPEC+ would produce more oil from April, easing last
year's deep supply cuts.
"The oil market has finally reached a stage that hints
recovery, as it is the first time in a year that everyone
expects OPEC+ to justifiably bring more output back to
production mode," said Bjornar Tonhaugen, head of oil markets at
Rystad Energy.
OPEC+, which meets on Thursday, could discuss allowing as
much as 1.5 million barrels per day (bpd) back into the market.

Abu Dhabi's ADNOC has told Asian oil buyers it plans to
increase crude allocations in April, sources close to the matter
told Reuters. OPEC oil output fell in February as a voluntary cut by Saudi
Arabia added to reductions in a previous OPEC+ pact, a Reuters
survey found, ending a run of seven consecutive monthly
increases.
OPEC+ member Russia failed to raise oil output in February
despite being granted permission by the group. Industry sources
said harsh winter weather hindered work. In Europe, Germany said it will start easing some
coronavirus restrictions from next week. In Asia, China's factory activity growth slipped to a
nine-month low in February, which could curtail crude demand in
the world's top importer.

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