Oil prices averted because investors await for decision of OPEC+
Based on the recently held report, oil prices were observed minor changes on Tuesday, just after OPEC (Organization of Petroleum Exporting Countries) as well as allied producers such as Russia. They have continued deadlock discussions on the output that going to obtained in the month of February while fuel demand worries remained on amid new coronavirus lockdowns.
According to the buzz, for the month of March Brent crude oil futures increased to eight cents or 0.2 percent to around $51.17 a barrel, while on the other hand, the United States West Texas Intermediate crude for February was estimated at $47.74 a barrel, gained to 12 cents, or 0.3 percent. Reportedly, both contracts dropped more than one percent on Monday after the Organization of the Petroleum Exporting Countries as well as its allies, a group called as OPEC+ has recently failed to approve on the oil output levels of February.
Saudi Arabia declared against pumping additional because of new shutdowns while Russia led calls for larger production, citing the huge recovering demand. On Tuesday OPEC+ will resume discussions. The analyst of oil markets of Rystad Energy, Louise Dickson said that OPEC+ drama is driving the recent oil prices lowered, but the heavier hand is expected the still unknown affect of the new strain of the coronavirus on the economic activity as well as travel. These factors permit a belated low-price correction after the winter holidays.
As per the latest news, gaining tensions in the territory of the Middle East has fully supported oil prices. On Monday, the Revolutionary Guards Corps of Iran grabbed a South Korean flagged tanker in Gulf waters as well as decreased its crew members amid concerns between Tehran and Seoul area over funds of Iran preserved in the banks of South Korea because of the United States sanctions.