Oil up as OPEC+ considers rollover rather than raising output | Reuters

Oil up as OPEC+ considers rollover rather than raising output | Reuters

Oil prices rose on Wednesday, boosted by expectations that OPEC+ producers might decide against increasing output when they meet this week, while signs of progress in the coronavirus vaccine rollout in the United States gave further support.

Brent oil was up 66 cents, or 1%, to $63.36 a barrel by 1313 GMT. U.S. West Texas Intermediate (WTI) crude rose 65 cents, or 1.1%, to $60.40 a barrel.

“The fundamentals of the oil market suggest further strength as oil demand grows with the recovery and leisure and travel activity is likely to bounce,” said Norbert Rücker, analyst at Swiss bank Julius Baer.

“We see oil prices pushing temporarily above $70 by mid-year,” he added.

Oil prices jumped after Reuters reported based on three sources that the Organization of the Petroleum Exporting Countries, Russia and their allies, a group known as OPEC+, are considering rolling over production cuts from March into April rather than raising output.