OPEC Secretary General Mohammad Barkindo said the outlook for oil demand looked more positive, especially in Asia.
Brent futures rose 2 cents to $ 63.71 per barrel at 10:48 a.m. EST (3:48 p.m. GMT). U.S. West Texas Intermediate (WTI) crude rose 7 cents, or 0.1%, to $ 60.71.
During the session, Brent and WTI fell from over $ 1 a barrel to weeklong lows. Last week, the two hit their highest level since January 2020. The rally dimmed over expectations from the Organization of the Petroleum Exporting Countries and its allies in the group known as OPEC + would produce more oil from April, easing the deep supply cuts last year.
“Crude prices are stabilizing ahead of Thursday’s OPEC + pivotal meeting,” said Edward Moya, senior market analyst at OANDA in New York City. “The energy market is bracing for more supply … but continued vaccine optimism and hopes for a global reopening will likely limit most of the downward pressure on oil prices.”
OPEC +, which meets on Thursday, could discuss authorization to re-enter the market up to 1.5 million barrels per day (bpd).
Abu Dhabi’s ADNOC has told Asian oil buyers that it plans to increase crude allocations in April, sources familiar with the matter told Reuters ahead of the OPEC + meeting.
OPEC oil production fell in February, a voluntary reduction by Saudi Arabia on top of cuts from a previous OPEC + pact, Reuters survey found, ending a string of seven consecutive monthly increases .
Russia failed to ramp up oil production in February despite OPEC + approval, as industry sources said harsh winter hampered work.
In Europe, Germany has said it will start easing some coronavirus restrictions from next week.
In Asia, Chinese factory activity growth fell to its lowest level in nine months in February, which could dampen demand for crude from the world’s largest importer.