Oil slips as producer cuts fail to banish demand fears - Reuters

Oil slips as producer cuts fail to banish demand fears - Reuters:

Oil prices edged lower on Tuesday, with investors apparently unconvinced that record supply cuts could soon balance markets pummeled by the coronavirus pandemic, though a predicted plunge in U.S. shale output provided some support.

Brent LCOc1 futures fell 25 cents, or 0.8%, to $31.49 a barrel by 0825 GMT after settling 0.8% higher on Monday. U.S. West Texas Intermediate (WTI) crude CLc1 was down 22 cents, or 1%, at $22.19, having dropped 1.5% in the previous session.

The Organization of the Petroleum Exporting Countries (OPEC), along with Russia and other producing countries - a grouping known as OPEC+ - agreed over Easter to cut output by 9.7 million barrels per day (bpd) in May and June, equating to about 10% of global supply before the coronavirus outbreak.

Additional output cuts by the United States, the world’s biggest producer, and other nations outside the OPEC+ group will take the estimated total reduction to about 19.5 million bpd.