Crude oil prices were little changed Tuesday, continuing to be negatively impacted by concerns about a global economic slowdown that could lower crude demand, but supported by expectations Opec+ will extend its supply curbs, Kallanish Energy reports.
U.S. West Texas Intermediate settled just a penny higher at $53.27 a barrel. Brent crude settled unchanged from Monday’s settlement at $62.29/Bbl.
Brent is down 17.5% from its 2019 peak reached in April, while WTI is down 20% over the same period of time.
Concern about slowing demand and economic growth has had a large impact on sentiment amid a trade war between the U.S. and China.
The U.S. Energy Information Administration cut its 2019 world oil demand growth forecast by 160,000 barrels per day, to 1.22 million Bpd (Mmbpd).
Supporting oil prices Tuesday was optimism Opec+, which includes most Opec members along with a number of non-Opec producers led by Russia, would extend its 1.2 Mmbpd crude production cut, in effect since Jan. 1, but slated to end June 30.
The group is expected to meet in early July to decide whether to extend the pact.
Russia’s average oil output stood at 11.04 Mmbpd for June 1-10, up from an average of 10.87 Mmbpd for June 1-3, two sources familiar with official data told Reuters.
Oil output in the first three days of June was the lowest since mid-2016, according to Reuters calculations.
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