[ad_1]
TOKYO (Reuters) – Oil prices fell more than 1% on Tuesday, extending losses that began last week as investors unwound long positions fearing OPEC would agree to increase the price. global supply at a meeting this week and that Chinese demand does not slip.
Brent fell 78 cents, or 1.2%, to $ 62.91 a barrel at 0138 GMT, after losing 1.1% the day before. U.S. West Texas Intermediate (WTI) crude slipped 74 cents, or 1.2%, to $ 59.90 a barrel, after losing 1.4% on Monday.
Investors are concerned that the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC +, could boost oil production, said Hiroyuki Kikukawa, chief research officer at Nissan Securities.
“Oil prices remained under pressure as investors made position adjustments ahead of the OPEC meeting,” he said.
The group is meeting on Thursday and may discuss the possibility of bringing up to 1.5 million barrels per day (bpd) of crude back to market.
OPEC’s oil production fell in February, a voluntary cut by Saudi Arabia on top of cuts agreed under the previous OPEC + pact, Reuters survey found, ending a string of seven increases consecutive monthly.
Market sentiment was also dampened by weak manufacturing data in China, Nissan Securities’ Kikukawa said.
Chinese factory activity growth fell to a nine-month low in February, which could reduce demand for Chinese crude and put pressure on oil prices.
Reporting by Yuka Obayashi; Editing by Tom Hogue
Source link
