* 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 graphic, adds tensions in the the Strait
of Hormuz)
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
vaccines may curb the spread of the novel coronavirus and drive
an economic rebound.
As prices rose in line with broader financial markets, Brent
crude futures reached $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.
By 1120 GMT, March Brent crude futures were at $52.52 a
barrel, up 72 cents, or 1.4%, and February WTI crude futures
rose 42 cents, or 0.9%, to $48.94 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+ officials 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 to release more oil because of an upsurge in
the COVID-19 pandemic.
"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.
Kuwait's oil minister said that he expected a gradual
recovery in oil demand, particularly in the second half of 2021,
as many countries start to distribute coronavirus vaccines.
Britain began vaccinating its population with the COVID-19
shot developed by Oxford University and AstraZeneca on
Monday.
Tensions in the Middle East also supported oil prices after
an "interaction" between Iranian authorities and a merchant
vessel in the Strait of Hormuz led the ship to alter its course
and proceed into Iranian waters.
Saudi-owned Al Arabiya TV said a South Korean-flagged tanker
carrying chemicals had been seized by Iran.
Oil also drew strength from a weaker dollar and strong
manufacturing activities in Asia.
(Reporting by Bozorgmehr Sharafedin in London, additional
reporting by Florence Tan in Singapore; Editing by Bernadette
Baum and Barbara Lewis)
Astrazeneca (AZN)
