Oil falls to two-week lows as OPEC+ seen easing supply curbs
Oil prices fell to their lowest in two weeks on Tuesday on expectations OPEC+ producers will ease supply curbs at their meeting later this week as economies start to recover from the coronavirus crisis.
OPEC Secretary General Mohammad Barkindo said the outlook for oil demand was looking more positive, particularly in Asia.
Brent futures fell 99 cents, or 1.6%, to settle at $62.70 a barrel, their lowest close since Feb. 12. The global benchmark has fallen about 7% from a 13-month peak hit last week.
U.S. West Texas Intermediate (WTI) crude fell 89 cents, or 1.5%, to $59.75, its lowest close since Feb. 19. WTI has dropped about 6% since Feb. 25 when it closed at its highest since May 2019.
Prices briefly extended losses after data from the American Petroleum Institute industry group showed a large increase in crude stockpiles last week but a much larger-than-expected decline in refined products inventories helped stem losses.
The oil rally has faded on expectations the Organization of the Petroleum Exporting Countries and allies in the group known as OPEC+ would produce more oil from April, easing last year’s deep supply cuts.
OPEC sees positive oil market outlook, continued downside risks
OPEC sees a generally positive oil market outlook with last year’s uncertainty easing, but downside risks caused by the pandemic persist, the group’s secretary general and its experts said on Tuesday.
Reference: Reuters
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