Oil Rises a Dollar on OPEC + Talks to Cut Production and Iranian Tension

Oil prices rose nearly a dollar on Tuesday as tensions escalated after Iran seized a South Korean ship and as OPEC+ considers a possible production cut in February.

Brent crude for March delivery increased 96 cents to $52.05 a barrel, while US West Texas Intermediate crude for February delivery was $48.53.
A barrel, up by 91 cents.

The two benchmarks fell more than 1% on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, failed to agree on adjustments to oil production in February.

Saudi Arabia opposes pumping more crude due to the new isolation measures, while Russia leads calls to increase production, indicating a recovery in demand.

An OPEC document dated January 4, seen by Reuters, indicated that the group was considering a reduction of 500,000 barrels per day in February, and that the other two scenarios were to keep the level of production unchanged or to increase 500,000 barrels per day.

Tensions continued due to the seizure of a South Korean ship by OPEC member Iran in Gulf waters, while Iran says Seoul owes it $ 7 billion.