TOKYO (Reuters) – Oil prices fell more than 1% on Tuesday, extending a loss that began last week, as investors find positions long over concerns that OPEC could agree to a global supply. increase in this week ‘s meeting and Chinese demand may be declining.
Brent crude fell 78 cents, or 1.2%, to $ 62.91 a barrel before 0138 GMT, after losing 1.1% the day before. U.S. West Texas Intermediate (WTI) slipped 74 cents, or 1.2%, to $ 59.90 a barrel, after losing 1.4% Monday.
Investors are concerned that the organization of the petrol exporting countries and its allies, an organization called OPEC +, will boost oil production, said Hiroyuki Kikukawa, general research manager at Nissan Securities.
“Oil prices remained under pressure as investors made positional changes ahead of the OPEC meeting,” he said.
The group meets Thursday and could discuss allowing up to 1.5 million barrels per day (bpd) of crude back into the market.
OPEC oil production fell in February when a voluntary cut by Saudi Arabia added to reductions agreed under the previous OPEC + agreement, a Reuters study found, culminating in a series of seven consecutive monthly increases.
Market sentiment was also dampened by weak manufacturing data out of China, Nissan Securities ’Kikukawa said.
Growth of factory activity in China fell to a nine-month high in February, which could dampen Chinese crude demand and put pressure on oil prices.
Reporting by Yuka Obayashi; Edited by Tom Hogue