Oil Falls as Gloomy Economic Data Counters OPEC+ Output Cuts - Bloomberg

Oil Falls as Gloomy Economic Data Counters OPEC+ Output Cuts - Bloomberg:

Oil declined as investors weighed OPEC and its allies’ extension of supply curbs into 2020 against troubling economic data from around the world.

Futures fell 1.2% in New York, erasing Monday’s 1.1% gain. The OPEC+ group agreed to maintain production cuts for another nine months in an effort to reduce stockpiles. Still, a slew of disappointing manufacturing reports from the U.S., China and Europe continued to shake faith in oil demand. Trade concerns resurfaced after Washington proposed more tariffs on European Union goods in retaliation for aircraft subsidies.

Oil has rallied since mid-June as tensions escalated in the Middle East and there were signs of progress in resolving the U.S.-China trade war. While announcing the extension of the Organization of Petroleum Exporting Countries’ production curbs, Saudi Arabian Energy Minister Khalid Al-Falih signaled that the group may have a long fight on its hands as American production booms. Forecasts for sluggish demand growth are also a concern for producers.