Despite posting their highest level for the year, crude oil futures settled marginally lower on Tuesday, as traders stayed cautious, weighing demand and supply situation in the market ahead of weekly inventory data.
West Texas Intermediate Crude oil futures for April ended down $0.06, or 0.1%, at $59.03 a barrel.
On Monday, oil futures for April ended up $0.57, or about 1%, at $59.09 a barrel.
While OPEC-led supply cuts and the U.S. sanctions on oil producers Iran and Venezuela appear to be tightening supply level in the market, demand growth worries keep cropping up time and again due to global economic slowdown and trade war concerns.
Later in the day, the American Petroleum Institute will release its monthly oil report. The Energy Information Administration will come out with its weekly crude inventory report on Wednesday morning.
The OPEC and its allies have reportedly canceled a meeting they had scheduled for in April, in order to assess the impact of U.S. sanctions on Iran and Venezuela.
The OPEC expects the market will remain oversupplied through the first half of 2019, said Saudi Energy Minister Khalid al-Falih recently at a committee meeting in Baku, Azerbajian.
The Joint Ministerial Monitoring Committee (JMMC) is scheduled to meet in May and then the full group of OPEC will gather on June 25 to decide on output cut extensions.
The material has been provided by InstaForex Company – www.instaforex.com