U.S. crude oil futures were higher on Tuesday, but in seesaw trading as the market weighed talk of more OPEC production cuts even as the economy in recession curbs oil demand. OPEC will discuss a further supply cut of about 1 million barrels per day when it meets on March 15, if oil prices remain low, an OPEC source told Reuters on Tuesday. [ID:nWLA6579] "NYMEX March crude has bounced off support here, having tested (near) $39.55, the Jan. 20 low ... volume is light," said Joe Posillico, a broker at MF Global in New York, who was skeptical about the bullish impact of more OPEC jawboning. "I don't think it was the OPEC headline that pushed crude higher here. That headline was not specific." Oil markets also were eyeing a threatened strike by oil workers in Nigeria and the possibility of work stoppages in the United States and Britain. PRICES * On the New York Mercantile Exchange at 12:14 p.m. EST (1714 GMT), March crude CLH9 was up 54 cents, or 1.35 percent, at $40.62 per barrel, trading from $39.65 to $41.17. * In London, March Brent LC0H9 was up 40 cents, or 0.91 percent, at $44.22 a barrel, trading from $43.84 to $44.92. * NYMEX March heating oil HOH9 dipped 0.24 cent, or 0.18 percent, to $1.34 a gallon, trading from $1.3135 to $1.36. * NYMEX March RBOB RBH9 slipped 1.04 cent, or 0.9 percent, to $1.1388 a gallon, trading from $1.1205 to $1.1705. * The March/March RBOB crack spread <0#RB-CL=R> was at $7.29. It ended Monday at $8.19. The March/March heating oil crack spread <0#CL-HO=R> was at $15.73. It ended Monday at $16.30. * The spread between the current front month and the five-year forward crude contract CLc61 was at $25.75 based on Monday's March 2014 contract settlement at $66.37. The spread ended at $26.29 on Monday. TECHNICALS NYMEX crude 10-day/20-day moving average: $42.65/$41.18 Technical support/resistance: NYMEX crude: $37.50/$43.40 NYMEX heating oil: $1.29/1.42 NYMEX RBOB: $1.09/1.25 For a report on technicals, click [ID;nL3496265] MARKET NEWS * Mexico shut the Dos Bocas oil exporting port on the Gulf of Mexico on Tuesday due to bad weather. [ID:nN03517928] * The dollar fell against the euro after an unexpected jump in U.S. pending home sales in December, easing demand for the greenback as a haven. [USD/] * Nigeria's senior oil workers' union has threatened an indefinite strike starting next Monday unless the government takes urgent steps to improve security. [ID:nL362599] * OPEC in January met only two-thirds of its pledge to lower oil output, according to a Reuters survey. [ID:nL368274] * Contract talks for 24,000 U.S. refinery, chemical plant and pipeline workers were "making good progress," a United Steelworkers union spokeswoman said Monday. [ID:nN02450168] * Ahead of weekly industry and government petroleum inventory data, a Reuters poll of analysts on Monday called for a build of 2.5 million barrels in crude oil stocks for the week to Jan. 30. The poll also forecast a drawdown in distillates and a rise in gasoline stocks. [EIA/S] * U.S. stocks rose as a surprise rise in December pending home sales tempered worries about the economy, while stronger-than-expected earnings posted by drugmaker Merck relieved a gloomy quarterly results season. [.N] (Reporting by Robert Gibbons and Gene Ramos; Editing by Walter Bagley)

Source