Oil prices tick up on OPEC studying output cut, Iran tensions

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 per cent 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.