* Brent hits highest since March 2020; WTI at Feb 2020
levels
* OPEC+ set for meeting to discuss Feb production levels
* Most OPEC+ experts against Feb oil output rise - sources
(Updates prices, adds analysts' comments, adds latest on OPEC+,
adds remarks by Kuwait oil min, UK new vaccine rollout, changes
the dateline from Singapore)
By Bozorgmehr Sharafedin
LONDON, Jan 4 (Reuters) - Oil prices touched multi-month
highs on Monday on expectations OPEC and allied producers may
cap output at current levels in February and on hopes that
coronavirus vaccines may help curb the spread of the virus and
drive a strong economic rebound in the new year.
Prices rose in line with broader financial markets with
Brent crude futures reaching $53.33 a barrel, the
highest since March 2020. U.S. West Texas Intermediate (WTI)
crude touched $49.83 a barrel, the highest since February
2020.
March Brent crude futures were at $52.41 a barrel, up 61
cents, or 1.2%, by 0944 GMT and February WTI crude futures rose
35 cents, or 0.7%, to $48.87 a barrel.
"Price action today suggests that the market is assuming
that OPEC+ keeps the level of cuts unchanged for the upcoming
month," said ING commodities strategist Warren Patterson.
OPEC and allies, a group known as OPEC+, will meet on
Monday. Most OPEC+ experts voiced opposition to increasing oil
output from February when they met on Sunday, three OPEC+
sources told Reuters on Monday.
In December, OPEC+ decided to increase production by 0.5
million barrels per day (bpd) from January as part of a 2
million bpd gradual rise this year but some members have
questioned the need for a further boost due to spreading
coronavirus infections.
"The start of the new year is presenting challenges to the
OPEC+ group, as the balance of risks to oil demand recovery has
changed," BNP Paribas analyst Harry Tchilinguirian said.
"The OPEC+ producer group may have to re-schedule and delay
further tapering of voluntary supply cuts in view of latest
COVID developments," he added.
Mohammad Barkindo, secretary general of OPEC, said on Sunday
that the group saw plenty of downside demand risks in the first
half of 2021.
Kuwait's oil minister also said on Monday that he expected a
gradual recovery in oil demand, particularly in the second half
of 2021, as many countries around the world start to distribute
coronavirus vaccines.
Britain began vaccinating its population with the COVID-19
shot developed by Oxford University and AstraZeneca on
Monday.
Weaker dollar and strong manufacturing activities in Asia
also supported oil prices.
(Reporting by Bozorgmehr Sharafedin in London, additional
reporting by Florence Tan in Singapore; Editing by Bernadette
Baum)
Astrazeneca (AZN)
