* Brent hits highest since March 2020; WTI at Feb 2020
levels
* OPEC+ set to discuss Feb production levels
* Most OPEC+ experts against Feb oil output rise - sources
(Updates prices, adds quote, details on Iran's seizure of a
tanker)
By Bozorgmehr Sharafedin
LONDON, Jan 4 (Reuters) - Oil prices retreated from
multi-month highs as the prospect an upsurge in the novel
coronavirus will lead to tougher movement restrictions offset
expectations OPEC and allied producers will decide on Monday to
cap output at current levels for now.
Brent crude rose 6 cents, or 0.1%, to $51.86 a
barrel at 1244 GMT, while U.S. West Texas Intermediate (WTI)
crude fell 17 cents, or 0.4%, to $48.35 a barrel.
Both contracts rose sharply earlier in the session, with
Brent trading at $53.33 a barrel, the highest since March 2020.
U.S. crude touched $49.83 a barrel, the highest since February
2020.
"With WTI not able to reach the level of $50 per barrel,
some profit taking might have set in," UBS analyst Giovanni
Staunovo said.
"Also the likely extension of mobility restrictions across
several European countries might have been a trigger causing oil
prices to erase earlier gains. Market players will also closely
track the outcome of today's OPEC+ meeting."
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 the 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 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
Iran's Revolutionary Guards seized a South Korean-flagged tanker
and its crew were detained for polluting the Gulf with
chemicals.
Oil also drew strength from a weaker dollar and strong
manufacturing activities in Asia and Europe. U.S. factory
activity data is expected later on Monday.
(Reporting by Bozorgmehr Sharafedin in London, additional
reporting by Florence Tan in Singapore; Editing by Bernadette
Baum and Barbara Lewis)
Astrazeneca (AZN)
