Oil prices rose 1% on Tuesday as OPEC+ agreed to adhere to February's planned oil price increase on the basis that Omicron, a strain of coronavirus, would have only a mild impact on demand, Reuters reported.

Brent crude was up $1.50, or almost 2%, at $80.48 a barrel by 1450 GMT and U.S. West Texas Intermediate (WTI) crude rose by $1.48, or 2%, to $77.56.

Four OPEC+ sources told Reuters that the group agreed at Tuesday's meeting to increase production by 400,000 barrels a day in February as Omicron is expected to have a short-term impact on demand.

"Though Omicron cases continue to climb in key geographies, the absence of widespread lockdown restrictions will likely keep near-term demand concerns in check," RBC analysts said in a note.

Analysts have warned that OPEC+ may have to change course if tensions between the West and Russia over Ukraine escalate and hit fuel supplies, or if Iran's nuclear talks with leading powers make progress, leading to an end to oil sanctions against Tehran.