Cuts in OPEC supplies and focus on global economic slowdown

Oil prices were under pressure on Tuesday because of an economic slowdown that began to have an impact on fuel consumption, although Saudi Arabia relied on a statement that a consensus was emerging with more fuel. Other producers on the extension of the supply cuts.

Brent futures in the first month were $ 61.06 at 0200 GMT. That was 22 cents, or 0.4%, less than the closing of the last session.

WTI (West Texas Intermediate) futures in the United States were $ 53.08 per barrel, down 17 cents or 0.3% from their latest settlement.

Oil futures are about 20% lower than the 2019 peaks reached at the end of April, and the May falls are the largest monthly declines since November.

This occurred as financial traders sell their oil futures in the face of growing concerns about the outlook for the global economy and oil consumption.

Saudi Energy Minister Khalid al-Falih said on Monday that a consensus was emerging among producers to continue to work "to maintain market stability" during the second half of the year. ;year.

The producer club of the Organization of Petroleum Exporting Countries (OPEC), dominated by the Middle East, as well as some allies, including Russia, has been holding back supplies since the beginning of the year to support the market.

The group plans to decide later this month or early July to continue with its offer.

US oil production has increased dramatically, making the country the world's largest producer of crude oil, with 12.3 million barrels a day at the end of May, compared with 11.11 million barrels a day in Russia and 9 65 million barrels a day. Saudi Arabia.

As US production is up sharply, more of its oil is exported, with a record six super-tankers scheduled to be loaded at the Louisiana Offshore Oil Port (LOOP) between late May and early June.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, said that "the tightening of supply was aimed at an increased risk of declining growth and demand," and that "l & # 39; escalating the trade war between the United States and China has added new risks slowing economies. "

The South Korean economy contracted by 0.4% in the first quarter, while core inflation slowed to a 20-year low in May, according to data released on Tuesday, indicating a further slowdown in Asia.

"The slowdown in economic activity now threatens to derail our basic scenario of strong cyclical (oil) demand growth," Bank of America Merrill Lynch said in a note.