WASHINGTON (dpa-AFX) - Oil prices fell on Tuesday, extending losses from the previous session amid concerns about possible oversupply in the market following the decision of the OPEC+ to gradually phase out voluntary production cuts from October.
West Texas Intermediate crude oil futures for July ended down by $0.97 or about 1.3% at $73.25 a barrel.
Brent crude futures dropped to $77.52 a barrel, down $0.84 or about 1.07%.
The OPEC's decision to phase out production cuts will see more than 500,000 bpd of crude returning to the market by December. 1.8 million bpd would come back by June of 2025.
Oil prices were also weighed down by demand worries with investors reassessing the strength of the U.S. economy in light of weak economic data released overnight.
U.S. manufacturing activity slowed for a second straight month in May and construction spending fell unexpectedly for a second consecutive month in April - adding to signs the world's largest economy is gradually slowing down.
Traders now await weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API will release the data later today, while EIA is scheduled to release its report Wednesday morning.
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