Oil prices drop due to expectations of higher OPEC supply
Picture used for illustrative purpose. File
Gulf Today Report
Oil prices fell beyond 1% on Tuesday on concerns that OPEC might increase oil supply this week and slow demand in China.
Brent crude dropped 70 cents, or 1.1%, to $62.99 a barrel by 04:57 GMT while US West Texas Intermediate (WTI) crude fell 71 cents, or 1.2%, to $59.93 a barrel.
Commodity analyst, Satoru Yoshida said expectations that the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, would boost oil output from April are pushing prices lower.
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"Concerns over an increase in OPEC+ supply and an end of Saudi Arabia's voluntary cut of 1 million barrels per day (bpd) this month weighed on oil prices," he said.
The decline in China’s manufacturing activities also played a part in the drop in the market.
