Oil steadies as investors keep an eye on OPEC+ output talks

Oil prices steadied on Tuesday after OPEC+ continued deadlock negotiations on February oil production, while fuel demand worries hovered amid new coronavirus restrictions.

Brent crude futures for March delivery gained 0.2%, or 8 cents, at $51.17 per barrel. U.S. West Texas Intermediate crude for February contract rose 0.3%, or 12 cents, at $47.74 per barrel.

Both contracts dropped over 1% on Monday after OPEC and its allies failed to reach an agreement on February’s oil production levels.

Saudi Arabia opposed an increase in production on account of new restrictions in Russia, which called for higher production amid recovering demand. OPEC and its allies including Russia are set to resume talks on Tuesday.

Meanwhile, rising conflict in the Middle East underpinned oil prices. Iran’s Revolutionary Corps on Monday captured a South Korean-flagged tanker in Gulf waters. The Corps detained the ship’s crew amid ongoing tensions between Seoul and Tehran over Iranian funds frozen in South Korean banks due to U.S. Sanctions.