March Brent crude futures were at $52.97 a barrel, up $1.17 or 2.3%, by 0617 GMT while February WTI crude futures rose $1, or 2.1%, to $49.52 a barrel.
Broader macro momentum trends including a weaker dollar and investors positioning for a recovery in the oil sector this year could support oil prices, Energy Aspects analyst Virendra Chauhan said.
"Maybe there is some positive sentiment from OPEC+ looking to constrain supply in light of the virus rearing its ugly head in the west," he added.
Mohammad Barkindo, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), said on Sunday that while crude demand is expected to rise by 5.9 million barrels per day (bpd) to 95.9 million bpd this year, the group sees plenty of downside demand risks in the first half of 2021.
"We are only beginning to emerge from a year of deep investment cuts, huge job losses and the worst crude oil demand destruction on record," he said.
Prices ended 2020 about 20% below 2019's average, still recovering from the impact of global lockdown measures, which have slashed fuel demand, even though the world's major producers agreed record output cuts.
OPEC and allied producers including Russia, a grouping known as OPEC+, decided last month to raise output by 500,000 barrels per day in January, anticipating a boost in demand, and agreed to meet every month to review production.
Analysts from Energy Aspects and RBC Capital said OPEC+ was likely to maintain January production levels in February.
"We think the producer group will opt to forgo any further production increases for February with COVID-19 cases continuing to climb and the slower-than-expected vaccine rollout," RBC Capital's Helima Croft said.
In the United States, crude oil production stayed under pressure from weak prices and tepid demand, down more than 2 million barrels per day (bpd) in October from earlier in 2020, a government report showed on Jan. 1.
(Reporting by Florence Tan; Editing by Kenneth Maxwell and Sam Holmes)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.