Oil drops 4% on demand fears despite OPEC + extension of production cuts[/rtl]
[rtl]Editorial Date: 2019/7/3 0:08 • 190 times read[/rtl]
(Reuters) - Oil prices fell more than 4 percent on Tuesday, even after OPEC and its allies, including Russia, agreed to extend production cuts until March, amid weak manufacturing data that worried investors that the global economic slowdown Undermining demand for oil.
Brent crude futures were down $ 2.66, or 4.1 percent, to settle at $ 62.40 a barrel.
West Texas crude futures fell 2.84 dollars, or 4.8 percent, to settle at $ 56.25 a barrel after hitting their highest level in more than five weeks on Monday.
The Organization of the Petroleum Exporting Countries (OPEC) and some outside producers, such as Russia, in the so-called OPEC + alliance, on Tuesday agreed to extend oil production cuts until March 2020, as members of the Organization crossed their differences in an effort to support crude prices.
The extension came after Russian President Vladimir Putin said on Saturday he had agreed with Saudi Arabia to extend the deal and continue to cut output by 1.2 million bpd, or 1.2 percent of global demand.
The signs of a global economic slowdown, which could adversely affect oil demand growth, mean OPEC and its allies may face a difficult task of boosting prices by curbing supply.
The United States and China agreed at the G-20 summit to resume trade talks, but factory activities shrank in most parts of Europe and Asia in June, while manufacturing activity in the United States slowed to near three-year lows.