Lebanese military gets U.S., British aid for defending border with Syria

US Helicopters in Lebanon

BEIRUT (Reuters) – Lebanon’s armed forces acquired three U.S. helicopters worth $26 million on Thursday to help in efforts to stop Syria’s civil war spilling over its border, along with almost $29 million of British aid as EU countries also step up their support.

The Lebanese armed forces have now received a total of nine Huey II multi-mission helicopters from the United States as part of $1.3 billion in security assistance given since 2004, U.S. interim Ambassador Richard H. Jones said.

“We have no plans to slow down or alter that level of support,” Jones said at Beirut’s military air base.

Fighting between Islamic State and al Qaeda-linked Nusra Front militants often overlaps Lebanon’s mountainous northern border with Syria, where a civil war is now in its fifth year.

Fighters briefly overran the northern Lebanese town of Arsal in 2014 before withdrawing to the hills after clashes with the army. Fighting in the border area killed at least 32 Nusra and Islamic State fighters this week.

The helicopters will improve the army’s ability to quickly reinforce “remote areas of tension along the border in support of the army’s fight against terrorists”, Jones said.

Lebanon has a weak government and a number of nations support its armed forces, concerned that regional conflict and a power struggle between Iran and Saudi Arabia could again destabilise a country which emerged from its own civil war 26 years ago.

On a visit to Lebanon on Thursday, British Foreign Secretary Philip Hammond announced a further $22 million for border guard training through to 2019 and $6.5 million for general training of 5,000 Lebanese troops. “Lebanon is an important part of the front line against terrorism,” Hammond said.

“We are delighted by the way the UK support is being translated into strengthened border security and is enabling the armed forces to take the fight to Daesh and keep Lebanon safe from the incursions of Daesh,” he said, referring to Islamic State.

EU foreign policy head Federica Mogherini, who visited Lebanon last week, said that Lebanon’s security was important for Europe’s safety too and the EU was willing to expand its support for the Lebanese armed forces.

In February Saudi Arabia suspended a $3 billion aid package for the Lebanese army in what an official called a response to Beirut’s failure to condemn attacks on Saudi diplomatic missions in Iran.

Lebanon’s Iranian-backed group Hezbollah is also a significant military presence in the country, with extensive combat experience. It fought Israel in an inconclusive 2006 war and is supporting President Bashar al-Assad’s forces in Syria.

(Reporting by Lisa Barrington and Issam Abdallah; Editing by Mark Heinrich)

Many Americans Believe In Torture

Guantanamo detainee's feet are shackled to the floor

By Chris Kahn

(Reuters) – Nearly two-thirds of Americans believe torture can be justified to extract information from suspected terrorists, according to a Reuters/Ipsos poll, a level of support similar to that seen in countries like Nigeria where militant attacks are common.

The poll reflects a U.S. public on edge after the massacre of 14 people in San Bernardino in December and large-scale attacks in Europe in recent months, including a bombing claimed by the militant group Islamic State last week that killed at least 32 people in Belgium.

Donald Trump, the front-runner for the 2016 Republican presidential nomination, has forcefully injected the issue of whether terrorism suspects should be tortured into the election campaign.

Trump has said he would seek to roll back President Barack Obama’s ban on waterboarding – an interrogation technique that simulates drowning that human rights groups contend is illegal under the Geneva Conventions. Trump has also vowed to “bring back a hell of a lot worse” if elected.

Trump’s stance has drawn broad criticism from human rights organizations, world bodies, and political rivals. But the poll findings suggest that many Americans are aligned with Trump on the issue, although the survey did not ask respondents to define what they consider torture.

“The public right now is coping with a host of negative emotions,” said Elizabeth Zechmeister, a Vanderbilt University professor who has studied the link between terrorist threats and public opinion. “Fear, anger, general anxiety: (Trump) gives a certain credibility to these feelings,” she said.

The March 22-28 online poll asked respondents if torture can be justified “against suspected terrorists to obtain information about terrorism.” About 25 percent said it is “often” justified while another 38 percent it is “sometimes” justified. Only 15 percent said torture should never be used.

Republicans were more accepting of torture to elicit information than Democrats: 82 percent of Republicans said torture is “often” or “sometimes” justified, compared with 53 percent of Democrats. (Graphic: http://tmsnrt.rs/1ShObx1)

About two-thirds of respondents also said they expected a terrorist attack on U.S. soil within the next six months.

TERRORISM TOP CONCERN

Surveys by other polling agencies in recent years have shown U.S. support for the use of torture at around 50 percent. A 2014 survey by Amnesty International, for example, put American support for torture at about 45 percent, compared with 64 percent in Nigeria, 66 percent in Kenya and 74 percent in India.

Nigeria is battling a seven-year-old insurgency that has displaced 2 million people and killed thousands, while al Shabaab militants have launched a series of deadly attacks in Kenya. India is fighting a years-old Maoist insurgency that has killed hundreds.

In November, terrorism replaced economy as the top concern for many Americans in Reuters/Ipsos polling, shortly after militants affiliated with the Islamic State killed 130 people in Paris. (Graphic: http://polling.reuters.com/#!poll/SC8/type/smallest/dates/20151101-20151231/collapsed/true/spotlight/1)

At the same time, Trump surged in popularity among Republicans, who viewed him as the strongest candidate to deal with terrorism. Besides his advocacy of waterboarding, Trump said that he would “bomb the hell out of ISIS,” using an alternative acronym for Islamic State.

“You’re dealing with people who don’t play by any rules. And I can’t see why we would tie our hands and take away options like waterboarding,” said Jo Ann Tieken, 71, a Trump supporter.

Tieken said her views had been influenced by the injuries suffered by her two step-grandsons while serving in the military four years ago in Afghanistan.

The Reuters/Ipsos poll included 1,976 people. It has a credibility interval, a measure of accuracy, of 2.5 percentage points for the entire group and about 4 percentage points for both Democrats and Republicans. (Graphic: http://reut.rs/1Rp3x6C)

(Reporting by Chris Kahn; Editing by Richard Valdmanis and Ross Colvin)

U.S. Dollar Lowest Level in 7 Weeks

An employee checks U.S. dollar bank-notes

By Sam Forgione

NEW YORK (Reuters) – The U.S. dollar hit its lowest level against the euro in nearly seven weeks on Wednesday following dovish comments from Federal Reserve Chair Janet Yellen that pushed out expectations for the central bank’s next interest rate hike.

The euro <EUR=> advanced to $1.1364, its highest against the dollar since Feb. 11, while the dollar hit a more than five-month low against the Swiss franc at 0.9592 franc <CHF=>.

The dollar index, which measures the currency against a basket of six major rivals, hit its lowest level in 12 days at 94.588 <.DXY> after posting its biggest one-day percentage decline since March 17 on Tuesday.

The ADP National Employment Report showed U.S. private employers added 200,000 jobs in March, above economists’ expectations. The data came ahead of the U.S. Labor Department’s more comprehensive March non-farm jobs report on Friday.

While the ADP data beat economists’ forecast for 194,000 jobs according to a Reuters poll, the data was not enough to halt the negative sentiment toward the dollar a day after Yellen stressed the need to be cautious in raising rates.

“It’s going to take more than one ADP number that was just okay to overcome Yellen’s dovish comments,” said Chris Gaffney, president of EverBank World Markets in St. Louis.

The dollar was on track to post its biggest quarterly percentage decline in five years, and was last down 4 percent for the first quarter.

The dollar’s losses accelerated against the euro after traders “covered” or reversed “short” bets against the euro once it crossed $1.1335, said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange in New York.

The Australian dollar <AUD=D4>, which is closely correlated with commodity prices, soared to a roughly nine-month high <AUD=D4> of $0.7709 as oil prices – which are U.S. dollar-denominated – rose and became cheaper for holders of other currencies. <O/R>

U.S. crude was last up 2.8 percent at $39.36 a barrel <LCOc1>.

Against the yen, the dollar was last down 0.2 percent at 112.45 yen <JPY=> after touching an eight-day low of 112.02 yen earlier.

(The story was refiled to change the word in the analyst comment to “reversed” from “repurchased”, in the eigth paragraph)

(Reporting by Sam Forgione; Editing by Dan Grebler)

Washington’s MedStar computers down for second day after virus

By Jim Finkle

(Reuters) – MedStar Health’s computer systems remained offline on Tuesday for the second straight day after the non-profit, one of the biggest medical service providers in the U.S. capital region, shut down parts of its network to stem the spread of a virus.

MedStar spokeswoman Ann Nickels said she did not know when the systems would be restored or what type of virus had infected the network.

“Medical services continue,” she said in an interview. When asked if elective procedures would be performed, she said that would determined “case by case.”

The non-profit, which runs 10 hospitals and some 250 outpatient facilities in Washington and Maryland, said Monday on its Facebook page that its computer network was infected by a virus that prevented some users from logging into the system early that day. MedStar quickly decided to take down “all system interfaces to prevent the virus from spreading” and moved to backup systems for paper record-keeping, the post said.

Nickels said she had no further information about the attack: “We are actively investigating.”

The FBI said on Monday that it was looking into the incident at MedStar, which is one of the largest medical providers to have operations interrupted by malicious software.

The discovery came after several recent attacks on U.S. hospitals by cyber extortionists using software known as ransomware, which encrypts data and demands that users pay to get it unlocked.

Last month, Hollywood Presbyterian Hospital in Los Angeles paid $17,000 to regain access to its systems after such an attack.

Security blogger Brian Krebs last week reported that Henderson, Kentucky-based Methodist Hospital declared a state of emergency after falling victim to a ransomware attack.

(Reporting by Jim Finkle; Additional reporting by Dustin Volz; Editing by Lisa Von Ahn)

Oil prices fall as investors faith in rally wanes

By Amanda Cooper

LONDON (Reuters) – Oil prices fell on Tuesday, reflecting growing concerns that a two-month rally may be in danger of fizzling, while analysts forecast another rise to record levels for U.S. crude stockpiles.

The oil price has risen by more than 45 percent since mid-February ahead of a meeting next month of the world’s major producers to discuss an output freeze to support prices. But there is growing scepticism about the outcome of the meeting.

“The amount of verbal intervention, which has obviously helped the market greatly over the past two months, combined with a production slowdown in the U.S., has probably taken (oil) as far as it can, now the market really wants to see some action,” Saxo Bank senior manager Ole Hansen.

“We’re seeing more and more commentators raise the flag and saying ‘have we seen too much, too soon?’ in terms of the rally across the sector.”

Brent crude futures <LCOc1> fell by $0.96 to $39.31 a barrel by 1124 GMT (7.24 a.m. ET), having lost some six percent in the last six trading days, while U.S. crude <CLc1> fell 78 cents to $38.60.

OPEC and other major suppliers, including Russia, are to meet on April 17 in Doha to discuss an output freeze aimed at bolstering prices.

But with ballooning global inventories, signs some OPEC members are losing market share, plus little evidence of a strong pick-up in demand, analysts said oil is likely to trade in a range.

“There is a rebalancing on the way, but we are still running a surplus and stocks are building up as far as we can see,” SEB commodities analyst Bjarne Schieldrop said.

“There is a clear risk for a pull-back in Brent crude oil with a return to deeper contango again. Long positioning in Brent is at record high and vulnerable for a bearish repositioning.”

Data on Monday from the InterContinental Exchange showed speculators hold the largest net long position in Brent futures on record. [O/ICE]

U.S. commercial crude oil stockpiles were expected to have reached record highs for a seventh straight week, while refined product inventories likely fell, a preliminary Reuters survey showed late on Monday. <API>

Barclays said in a note on Monday net flows into commodities totaled more than $20 billion in January-February, the strongest start to a year since 2011, and prices could fall 20 to 25 percent if that were reversed.

(Additional reporting by Aaron Sheldrick in TOKYO; Editing by Jane Merriman and Susan Thomas)

U.S. frustration simmers over Belgium’s struggle with militant threat

By Mark Hosenball

WASHINGTON (Reuters) – Shortly after last November’s attacks on Paris by a Brussels-based Islamic State cell, a top U.S. counter-terrorism official traveling in Europe wanted to visit Brussels to learn more about the investigation.

When the official tried to arrange meetings, however, his Belgian counterparts were not welcoming, according to U.S. officials familiar with the events. The Belgians indicated it was a bad time to speak to foreign officials as they were too busy with the investigation, said the officials, who asked not to be identified.

Belgian officials declined to comment on the incident.

The brush-off was one small sign of mounting U.S. frustration over Brussels’ handling of its worsening Islamic militant threat.

Concern that the small European nation’s security and intelligence officials are overwhelmed — and that its coordination with allies falls short — have again come to the fore following the Islamic State-claimed attacks on Tuesday that killed at least 31 people.

Several U.S. officials say that security cooperation has been hampered by patchy intelligence–sharing by Brussels and wide differences in the willingness of different agencies to work with foreign countries, even close allies.

One U.S. government source said that when American investigators try to contact Belgian agencies for information, they often struggle to find which agency or part of an agency might have relevant information.

Belgium has ordered a sharp increase in security budgets following the Paris attacks, despite being under steady pressure to limit its debt levels under euro zone rules. The government has promised to recruit around 2,500 more federal police, who pursue major crimes, to make up for a shortfall of close to a fifth of the full-strength force of 12,500.

It also says it thwarted a major attack in January 2015, and is eager to cooperate with European and U.S. counterparts.

“These attacks show that more coordination with the United States is clearly desirable,” Guy Rapaille, the president of the committee that provides oversight of Belgium’s security and intelligence services, told Belgium’s state broadcaster RTBF.

“But you have to remember that big powers guard their intelligence very closely.”

U.S. officials acknowledge the recent Belgian efforts to step up funding and recruitment.

Yet they say Belgian security services are outmatched by the threat in a country that, per capita, has supplied the highest number of foreign fighters to Syria of any European nation.

“They’re way behind the ball and they’re paying a terrible price,” Rep. Adam Schiff, ranking Democrat on the House Intelligence Committee, told Reuters.

Asked on Wednesday whether Belgium was too complacent over the threat posed by Islamic militancy, State Department spokesman Mark Toner said:

“I want to stay clear of saying that Belgium was somehow caught by surprise or not aware. You know, we collaborate, we work with Belgium closely.”

Some U.S. counter-terrorism officials say much of the gap between Washington and Belgium — and some other European countries — is cultural. Europeans’ deeper commitment to personal privacy sometimes prevents or delays sharing of information such as travel data — that is taken for granted in the United States.

After the September 11, 2001 attacks, the U.S. government radically reshaped its counter-terrorism agencies. It broke down walls between law enforcement and intelligence authorities, and created new coordinating institutions such as the Director of National Intelligence and National Counterterrorism Center.

Belgium, by contrast, is a patchwork country divided between French and Dutch speakers and with multiple levels of government.

Belgian security chiefs have repeatedly complained that they cannot handle up to 900 home-grown Islamist militants, among the highest per-capita rates in Europe. Belgium does not divulge the exact number of personnel in its security services and military intelligence, but security experts say they appear under-resourced compared to European counterparts.

“Add to that the problem of two languages (French and Flemish), lack of Arabic speakers, and weak coordination between national and local government, you have a huge discrepancy between threat and response,” said former CIA official and White House advisor Bruce Riedel, now at the Brookings Institution.

(Additional reporting by David Brunnstrom and Jonathan Landay in Washington, Robin Emmott and Alastair Macdonald in Brussels; Writing by Warren Strobel; editing by Don Durfee and Stuart Grudgings)

Oil set for weekly loss as huge supplies cut short rally

A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma

By Barani Krishnan

NEW YORK (Reuters) – Oil prices fell to below $40 a barrel on Thursday, on track to their first weekly loss in over a month, pressured by record high U.S. stockpiles, weakening equity markets and a strong dollar.

With crude futures losing as much as 6 percent since Tuesday’s settlement – their biggest slide in two days since mid-February – analysts said the oil rally of the past five weeks that brought prices up from mid-$20 levels may be unraveling.

U.S. government data on Wednesday showed crude stockpiles jumped 9.4 million barrels last week – three times more than forecast by analysts in a Reuters poll.

A senior executive from the International Energy Agency, meanwhile, said a deal among a few OPEC producers and Russia to freeze production was likely to be “meaningless” as Saudi Arabia was the only one with the ability to raise output.

Brent crude’s front-month contact <LCOc1> was down 61 cents, or 1.5 percent, at $39.86 a barrel by 11:08 a.m. EST. It was on track to a 3 percent drop on the week, its biggest weekly slide since mid-January.

U.S. crude’s front-month <CLc1> fell 90 cents to $38.89. For the week, it was poised to lose about 2 percent, its first weekly loss since mid-February.

Earlier this week, both the benchmarks were up more than 50 percent from multi-year lows hit in January.

“A dose of reality (has) derailed the current perception (of a) rally, at least for the time being,” said Dominick Chirichella, analyst at New York’s Energy Management Institute.

The market will look out for a weekly reading on the U.S. oil drilling rig count due after 1:00 p.m. EST. A production indicator, the rig count rose last week after 12 weeks of cuts.

Shares on Wall Street <.SPX>, trading in tandem with crude most of this year, headed for their first weekly drop in six weeks. Financial markets were broadly risk averse with volumes thin ahead of the Good Friday and Easter break.

The dollar’s <.DXY> first weekly gain since late February also made oil and other commodities denominated in the greenback less affordable to holders of the euro and other currencies.

Trading houses were betting on oil being oversupplied at least two more years, while Russia looked to export more crude to Europe in April than any month since 2013.

Scott Shelton, energy broker at ICAP in Durham, North Carolina, feared of big builds in U.S. distillates, which include heating oil and diesel, as refineries emerge from maintenance. “We need to export large quantities of distillate,” he said. “Production has not fallen enough.”

(Additional reporting by Simon Falush in LONDON; Editing by Marguerita Choy)

U.S. says working with Russia on aid flow, truce in Syria

By Stephanie Nebehay

GENEVA (Reuters) – The United States is working with Russia to improve access to besieged areas in Syria and to stop the Syrian government from removing medical supplies from aid convoys, a senior U.S. official said on Wednesday.

Antony Blinken, deputy U.S. Secretary of State, said that major and regional powers were monitoring a fragile cessation of hostilities that went into force on Saturday to “prevent any escalation” but it was a “challenging process”.

“At the end of the day the best possible thing that could happen is for the cessation of hostilities to really take root, and to be sustained, for the humanitarian assistance to flow and then for the negotiations to start that lead to a political transition,” Blinken told a news conference.

The World Health Organisation said Syrian officials had “rejected” medical supplies from being part of the latest convoy to the besieged town of Moadamiya on Monday. WHO spokesman Tarik Jasarevic said they included emergency kits, trauma and burn kits and antibiotics.

“We are indeed very concerned about reports that medical supplies were removed from some of the aid convoys. This is an issue that was brought before the task force,” Blinken said, referring to the International Syria Support Group (ISSG).

“We are now working, including with Russia, to ensure that going forward medical supplies remain in the aid convoys as they deliver assistance.”

Russian officials were not immediately available to comment.

“The removal of those supplies is yet another unconscionable act by the regime, but this is now before the task force and we will look in the days ahead as assistance continues to flow to make sure that those medical supplies are in fact included,” Blinken said.

The humanitarian task force, chaired by Jan Egeland, meets again in Geneva on Thursday.

Another ISSG task force on the cessation of hostilities is handling reports of violations of the truce, which does not include Islamic State or the al Qaeda-linked Nusra Front.

“We’re then able to immediately try to address them and to prevent them from reoccurring and thus to prevent any escalation that leads to the breakdown of the cessation of hostilities,” Blinken said, after talks with U.N. Special Envoy Staffan de Mistura.

“That’s the most effective way to try to keep it going and then to deepen it. But it is a very challenging process, it’s fragile and we have our eyes wide open about those challenges.”

(Reporting by Stephanie Nebehay; Editing by Janet Lawrence)

U.N. imposes harsh new sanctions on North Korea over its nuclear program

By Louis Charbonneau and Michelle Nichols

UNITED NATIONS (Reuters) – North Korea faces harsh new U.N. sanctions to starve it of money for its nuclear weapons program following a unanimous Security Council vote on Wednesday on a resolution drafted by the United States and Pyongyang’s ally China.

The resolution, which dramatically expands existing sanctions, follows North Korea’s latest nuclear test on Jan. 6 and a Feb. 7 rocket launch that Washington and its allies said used banned ballistic missile technology. Pyongyang said it was a peaceful satellite launch.

U.S. Ambassador Samantha Power said the sanctions go further than any U.N. sanctions regime in two decades and aim to cut off funds for North Korea’s nuclear and other banned weapons programs.

All cargo going to and from North Korea must now be inspected and North Korean trade representatives in Syria, Iran and Vietnam are among 16 individuals added to a U.N. blacklist, along with 12 North Korean entities.

Previously states only had to inspect such shipments if they had reasonable grounds to believe they contained illicit goods.

“Virtually all of the DPRK’s (North Korea) resources are channeled into its reckless and relentless pursuit of weapons of mass destruction,” Power told the council after the vote, adding that the cargo inspection provisions are “hugely significant.”

U.N. Secretary-General Ban Ki-moon welcomed the 15-nation council’s move, saying in a statement that Pyongyang “must return to full compliance with its international obligations.”

North Korea has been under U.N. sanctions since 2006 because of its four nuclear tests and multiple rocket launches.

After nearly two months of bilateral negotiations that at one point involved U.S. President Barack Obama and his Chinese counterpart, Xi Jinping, China agreed to support the unusually tough measures intended to persuade its close ally to abandon its atomic weapons program.

China’s Ambassador Liu Jieyi called for a return to dialogue, saying: “Today’s adoption should be a new starting point and a paving stone for political settlement of the nuclear issue on the Korean Peninsula.”

However, he reiterated Beijing’s concerns about the possible deployment of an advanced U.S. missile system in South Korea.

“At this moment all parties concerned should avoid actions that will further aggravate tension on the ground,” he said. “China opposes the deployment of the THAAD anti-missile system … because such an action harms the strategic and security interests of China and other countries of the region.”

He was referring to the U.S. Terminal High Altitude Area Defense (THAAD) system.

There was no immediate reaction from the North Korean U.N. mission. The official North Korean news agency KCNA said on Monday the proposed sanctions were “a wanton infringement on (North Korea’s) sovereignty and grave challenge to it.”

Shortly after the U.N. move, the U.S. Treasury Department said it was blacklisting two entities and 10 individuals for ties to North Korea’s government and its banned weapons programs, and said the State Department was also blacklisting three entities and two individuals for similar reasons.

The new U.N. sanctions close a gap in the U.N. arms embargo on Pyongyang by banning all weapons imports and exports.

The Security Council’s list of explicitly banned luxury goods has been expanded to include luxury watches, aquatic recreational vehicles, snowmobiles worth more than $2,000, lead crystal items and recreational sports equipment.

There is also an unprecedented ban on the transfer to North Korea of any item that could directly contribute to the operational capabilities of its armed forces, such as trucks that could be modified for military purposes.

The new U.N. measures also blacklist 31 ships owned by North Korean shipping firm Ocean Maritime Management Company (OMM).

Added to the U.N. sanctions list was the National Aerospace Development Agency, or NADA, the body responsible for February’s rocket launch.

Newly blacklisted individuals include a senior official in North Korea’s long-range missile program, senior officials at NADA, officials for Tanchon Commercial Bank in Syria and Vietnam, and Korea Mining Development Trading Corporation (KOMID) representatives in Iran and Syria.

An earlier draft would have blacklisted 17 individuals but the proposed designation of a KOMID representative in Russia was dropped from the final version of the resolution.

(Reporting by Louis Charbonneau and Michelle Nichols; Editing by James Dalgleish)

Oil below $37 as record U.S. inventories overshadow output freeze plan

By Alex Lawler

LONDON (Reuters) – Oil fell further below $37 a barrel on Wednesday as U.S. crude stockpiles rose to a new record, underlining the extent of a supply glut and countering support from producer efforts to tackle it.

Crude inventories rose by 10.4 million barrels, the U.S. government’s Energy Information Administration (EIA) said in its weekly report released at 1530 GMT (10:30 a.m. EST), much more than analysts had expected. [EIA/S]

Global benchmark Brent crude <LCOc1> was down 45 cents at $36.36 a barrel by 1548 GMT (10:48 a.m. EST). On Tuesday, it reached $37.25, the highest in almost two months. U.S. crude <CLc1>, also known as WTI, was down 55 cents at $33.85.

“Today’s EIA data will do very little to help oil’s recent bounce,” said Chris Jarvis, analyst at Caprock Risk Management in Frederick, Maryland.

“In short, it’s difficult to make a bullish case. Signs that the glut in oil and reversal of the building trend will subside any time soon seems distant.”

The inventory rise was even larger than the 9.9 million-barrel increase reported on Tuesday by industry group the American Petroleum Institute (API). The API report had weighed on prices earlier in the session.

Brent has risen 34 percent from a 12-year low of $27.10 hit on Jan. 20, adding to expectations that further declines may not be on the cards. An analyst at the International Energy Agency said on Tuesday prices appeared to have bottomed.

Crude has collapsed from more than $100 in mid-2014, pressured by excess supply and a decision by the Organization of the Petroleum Exporting Countries to abandon its traditional role of cutting production by itself to boost prices.

After more than a year of failing to agree any steps, OPEC and outside producers have stepped up diplomatic activity to fix the supply glut. Saudi Arabia, Qatar, Venezuela and non-OPEC producer Russia said on Feb. 16 they would freeze output.

The four countries have agreed to meet again in mid-March, Venezuelan Oil Minister Eulogio Del Pino said last week. The location for the talks has yet to be decided, OPEC delegates say.

In an early sign that Moscow will stick to the plan, Russia reported its oil output was little changed in February and oil company Rosneft <ROSN.MM> is even floating the idea of a domestic production cut, two industry sources said.

Saudi Arabia has yet to report its production, but a Reuters survey this week found no sign of an increase in February. <OPEC/O>

(Additional reporting by Barani Krishnan in New York and Osamu Tsukimori in Tokyo; Editing by Dale Hudson and Susan Fenton)