London: Oil rose towards $66 a barrel on Tuesday before a meeting of the producer group OPEC+ to discuss oil output policy amid concern India's coronavirus crisis could dent a recovery in fuel demand.
OPEC and allies hold a monitoring meeting on Tuesday instead of Wednesday as had been planned. A technical meeting on Monday had voiced concern about surging COVID-19 cases but kept its 2021 oil demand forecast unchanged.
Brent crude was up 30 cents, or 0.5%, at $65.95 a barrel by 1015 GMT, after dropping 0.7% on Monday. U.S. oil also gained 30 cents, or 0.5%, to $62.21.
"Traders do not want to miss out on a potential bullish OPEC+ meeting so a limited optimism is reflected in prices," said Bjornar Tonhaugen of Rystad Energy. "Should OPEC+ turn a blind eye to India though, the gains may quickly evaporate."
The group known as OPEC+ is set to slightly ease oil output cuts from May 1 under a plan agreed before the coronavirus surge in India, the world's third-largest crude importer which has recorded a daily rise of more than 300,000 cases for several days. It has also reported a total of almost 200,000 deaths.
Others expect OPEC+ to stick to its easing policy.
"We still expect that the group will announce no changes to its plan," ING Economics analysts said in a note.
In another development that could eventually add supply to the market, talks in Vienna aimed at reviving the 2015 Iran nuclear accord were set to resume on Tuesday.
Record OPEC+ supply cuts last year have helped drive a recovery in prices from historic lows. Most of the curbs are still in place.
