Oil steadied on Monday, supported by hopes for a U.S. fiscal package pressured but weighed by concerns over surging coronavirus cases globally and by Libya's plan to boost output.
Analysts also awaited details from an OPEC+ ministerial monitoring committee meeting that started on Monday. The panel could discuss rolling over existing oil cuts for 2021, but is unlikely to make a formal recommendation, two OPEC+ sources told Reuters.
The Kremlin signaled on Monday a new round of oil talks with Saudi Arabia ahead of the meeting.
OPEC+, a grouping of the Organization of the Petroleum Exporting Countries and allies including Russia, are curbing oil production by 7.7 million barrels per day (bpd), down from cuts totalling 9.7 million bpd, and are due to reduce the cuts by a further 2 million bpd in January.
Brent crude <LCOc1> futures gained 5 cents at $42.98 a barrel by 11:17 a.m. EDT (1517 GMT). U.S. West Texas Intermediate (WTI) crude <CLc1> futures rose 22 cents to $41.10 a barrel.
"OPEC+ JMMC will take center stage today for oil markets," said Bjornar Tonhaugen, Rystad Energy's head of oil markets. "The market will be looking for clues of a step-down on the scheduled 2-million bpd supply increase from January 2021, but we believe the decision will have to wait for the ordinary OPEC+ meeting on Dec. 1."
Hopes for a new U.S. stimulus package lent some support to prices as House Speaker Nancy Pelosi said on Sunday she was optimistic that legislation on a wide-ranging relief package could be pushed through before the election.
Meanwhile, worldwide coronavirus cases crossed 40 million on Monday, according to a Reuters tally. Many European governments are tightening lockdowns to curb the spread of the virus, renewing concerns about oil demand.
"This latest swathe of stringent restrictions will inevitably impede economic growth and undermine the fuel demand recovery," said Stephen Brennock of oil broker PVM.
Graphic: World population under curfew - https://fingfx.thomsonreuters.com/gfx/mkt/nmopaynbkpa/undercurfew.JPG
Weighing on markets, Libya has significantly boosted its output after the easing of a blockade by eastern forces in September. The 70,000-bpd Abu Attifel oilfield was expected to begin its restart on Oct. 24 after being shut down for months, two engineers said.
Bank of America projected Brent and WTI would average $44 and $40 per barrel in 2020, respectively, and $50 and $47 per barrel in 2021.
Meanwhile, China's oil-buying frenzy earlier this year is expected to slow in the fourth quarter. Chinese refiners slowed their processing rates in September.
(Reporting by Stephanie Kelly in New York; additional reporting by Bozorgmehr Sharafedin in London and Florence Tan in Singapore; Editing by Marguerita Choy and Mark Heinrich)
