Oil falls to 2-week lows as OPEC+ seen easing supply curbs | Reuters
Oil prices fell to their lowest in two weeks on Tuesday on expectations OPEC+ producers will ease supply curbs at their meeting later this week as economies start to recover from the coronavirus crisis.
OPEC Secretary General Mohammad Barkindo said the outlook for oil demand was looking more positive, particularly in Asia.
Brent futures fell 99 cents, or 1.6%, to settle at $62.70 a barrel, their lowest close since Feb. 12. The global benchmark has fallen about 7% from a 13-month peak hit last week.
U.S. West Texas Intermediate (WTI) crude fell 89 cents, or 1.5%, to $59.75, its lowest close since Feb. 19. WTI has dropped about 6% since Feb. 25 when it closed at its highest since May 2019.
The oil rally has faded on expectations the Organization of the Petroleum Exporting Countries and allies in the group known as OPEC+ would produce more oil from April, easing last year’s deep supply cuts.
Tuesday, 2 March 2021
#Saudi Wealth Fund PIF May Close Its Biggest-Ever Loan Deal This Week - Bloomberg
Saudi Wealth Fund PIF May Close Its Biggest-Ever Loan Deal This Week - Bloomberg
Saudi Arabia’s sovereign wealth fund is set to close a deal for its biggest loan ever as soon as this week, according to people familiar with the matter.
The Public Investment Fund is raising about $15 billion from a group of international banks to finance new investments, the people said, asking not to be identified as the information is private. The final bank group participating in the facility is still being determined, and the size of the loan as well as the timing may change, they said.
The PIF declined to comment.
The wealth fund has more than doubled the size of the loan from an initial plan to raise up to $7 billion, Bloomberg reported last month.
The $400 billion sovereign investor fund is tapping banks for its third loan so far, after borrowing $11 billion in its debut debt raising, and another $10 billion bridge facility in 2019 that it paid off last year.
The fund has also received cash injections in the form of the $30 billion proceeds from the sale of shares in Saudi Aramco and a $40 billion transfer from the kingdom’s foreign reserves last year as it looked to finance an asset-buying spree during a slump in equity markets caused by the coronavirus.
Saudi Arabia’s sovereign wealth fund is set to close a deal for its biggest loan ever as soon as this week, according to people familiar with the matter.
The Public Investment Fund is raising about $15 billion from a group of international banks to finance new investments, the people said, asking not to be identified as the information is private. The final bank group participating in the facility is still being determined, and the size of the loan as well as the timing may change, they said.
The PIF declined to comment.
The wealth fund has more than doubled the size of the loan from an initial plan to raise up to $7 billion, Bloomberg reported last month.
The $400 billion sovereign investor fund is tapping banks for its third loan so far, after borrowing $11 billion in its debut debt raising, and another $10 billion bridge facility in 2019 that it paid off last year.
The fund has also received cash injections in the form of the $30 billion proceeds from the sale of shares in Saudi Aramco and a $40 billion transfer from the kingdom’s foreign reserves last year as it looked to finance an asset-buying spree during a slump in equity markets caused by the coronavirus.
Bond Respite Lures #UAE Issuers at Opposite Ends of Credit Scale - Bloomberg
Bond Respite Lures UAE Issuers at Opposite Ends of Credit Scale - Bloomberg
United Arab Emirates borrowers at the opposite ends of the credit-rating spectrum are seizing on a lull in the U.S. Treasury rout to sell bonds.
Abu Dhabi wealth fund Mubadala Investment Co. is planning a dual-tranche offering denominated in euros, according to a person familiar with the matter. Mubadala issues its debt through a unit, Mamoura Diversified Global Holding PJSC, which has the third-highest credit grade from all three major rating companies.
Sharjah, a sheikdom with the lowest non-junk rating at Moody’s Investors Service and S&P Global Ratings, mandated HSBC Holdings Plc this week to arrange a sale of 12- and 30-year dollar bonds.
February was the worst month for developing-nation bonds in almost a year after a spike in U.S. Treasury yields sent fixed-income markets tumbling, but it hasn’t derailed placements for now. While emerging-market sovereign and corporate sales fell 6.8% in February from the year earlier, they were still up 1.4% at $170.5 billion in the first two months.
Both offerings should find buyers, according to Sergey Dergachev, senior portfolio manager for emerging-market debt at Union Investment in Frankfurt.
“Lower-rated sovereign and corporate credits tend to outperform due to their lower sensitivity to Treasury rates,” which should support the Sharjah deal, he said. Meanwhile, Mubadala’s sale will draw investors looking to pick up “quasi-Abu Dhabi sovereign risk,” he said.
United Arab Emirates borrowers at the opposite ends of the credit-rating spectrum are seizing on a lull in the U.S. Treasury rout to sell bonds.
Abu Dhabi wealth fund Mubadala Investment Co. is planning a dual-tranche offering denominated in euros, according to a person familiar with the matter. Mubadala issues its debt through a unit, Mamoura Diversified Global Holding PJSC, which has the third-highest credit grade from all three major rating companies.
Sharjah, a sheikdom with the lowest non-junk rating at Moody’s Investors Service and S&P Global Ratings, mandated HSBC Holdings Plc this week to arrange a sale of 12- and 30-year dollar bonds.
Both offerings should find buyers, according to Sergey Dergachev, senior portfolio manager for emerging-market debt at Union Investment in Frankfurt.
“Lower-rated sovereign and corporate credits tend to outperform due to their lower sensitivity to Treasury rates,” which should support the Sharjah deal, he said. Meanwhile, Mubadala’s sale will draw investors looking to pick up “quasi-Abu Dhabi sovereign risk,” he said.
#Dubai's Emaar Properties to Take Over Malls Unit in Deal Valuing it at $6.5 Bln - Bloomberg
Dubai's Emaar Properties to Take Over Malls Unit in Deal Valuing it at $6.5 Bln - Bloomberg
Emaar Properties PJSC, the Dubai-based developer of the world’s tallest tower, plans to take over its malls unit, in a transaction that will value the business at 24 billion dirhams ($6.5 billion).
Emaar Properties, which already owns 85% of Emaar Malls, proposed to pay 0.51 shares for every one share in Emaar Malls, the companies said a statement. According to Bloomberg calculations, the offer values Emaar Malls’ at 1.85 dirhams per share and a 10% premium to its last closing price.
A property glut and faltering demand in Dubai have driven prices down by more than a third since the market peaked some seven years ago. The decline has been made worse by the coronavirus pandemic, and Emaar last year temporarily halted new projects.
The company sold its share in Emaar Malls, which operates one of the world’s biggest shopping centers in the Middle East business hub, in 2014. The order book was more than 30 times oversubscribed for the institutional segment, and more than 20 times for the individual part at the top of the price range at 2.9 dirhams.
Restrictions to check the spread of the coronavirus pandemic weighed on the business for most of last year, though visitor numbers started to pick up when curbs were eased. Still, Emaar Malls posted a wider-than-expected loss for the year.
Emaar Properties PJSC, the Dubai-based developer of the world’s tallest tower, plans to take over its malls unit, in a transaction that will value the business at 24 billion dirhams ($6.5 billion).
Emaar Properties, which already owns 85% of Emaar Malls, proposed to pay 0.51 shares for every one share in Emaar Malls, the companies said a statement. According to Bloomberg calculations, the offer values Emaar Malls’ at 1.85 dirhams per share and a 10% premium to its last closing price.
A property glut and faltering demand in Dubai have driven prices down by more than a third since the market peaked some seven years ago. The decline has been made worse by the coronavirus pandemic, and Emaar last year temporarily halted new projects.
The company sold its share in Emaar Malls, which operates one of the world’s biggest shopping centers in the Middle East business hub, in 2014. The order book was more than 30 times oversubscribed for the institutional segment, and more than 20 times for the individual part at the top of the price range at 2.9 dirhams.
Restrictions to check the spread of the coronavirus pandemic weighed on the business for most of last year, though visitor numbers started to pick up when curbs were eased. Still, Emaar Malls posted a wider-than-expected loss for the year.
Major Gulf markets gain; ex-dividend stocks drag down #Qatar | Reuters
Major Gulf markets gain; ex-dividend stocks drag down Qatar | Reuters
Most Gulf stockmarkets ended higher on Tuesday, led by gains in financial and property stocks, but the Qatari index was pressured by a slew of blue-chips trading ex-dividend.
Saudi Arabia’s benchmark index climbed 1.2%, outperforming the region, boosted by a 2.5% rise in Al Rajhi Bank and a 3.3% jump in National Commercial Bank, the kingdom’s largest lender.
However, oil behemoth Saudi Aramco eased 0.1%.
In Qatar, the benchmark slid 1.4%, dragged down by a 4.7% fall in petrochemical firm Industries Qatar and a 4.8% decline in lender Masraf Al Rayan as the duo traded ex-dividend.
The shares of both companies saw their biggest intraday falls since March 9, 2020 when the region witnessed panic trading following a more than 20% plunge in oil futures after Saudi Arabia slashed prices as an OPEC deal collapsed.
Dubai’s main share index gained 0.7%, with blue-chip developer Emaar Properties rising 1.7%, while sharia-compliant lender Dubai Islamic Bank finished 0.8% higher.
Elsewhere, Amanat Holding was up 0.7%, extending gains from the previous session.
On Monday, the Dubai-listed healthcare company said it had bought long-term care specialist Cambridge Medical and Rehabilitation Center for an enterprise value of $232 million from private equity firm TVM Capital Healthcare.
In Abu Dhabi, the index added 0.8%, buoyed by a 1.8% gain in the country’s largest lender First Abu Dhabi Bank.
Most Gulf stockmarkets ended higher on Tuesday, led by gains in financial and property stocks, but the Qatari index was pressured by a slew of blue-chips trading ex-dividend.
Saudi Arabia’s benchmark index climbed 1.2%, outperforming the region, boosted by a 2.5% rise in Al Rajhi Bank and a 3.3% jump in National Commercial Bank, the kingdom’s largest lender.
However, oil behemoth Saudi Aramco eased 0.1%.
In Qatar, the benchmark slid 1.4%, dragged down by a 4.7% fall in petrochemical firm Industries Qatar and a 4.8% decline in lender Masraf Al Rayan as the duo traded ex-dividend.
The shares of both companies saw their biggest intraday falls since March 9, 2020 when the region witnessed panic trading following a more than 20% plunge in oil futures after Saudi Arabia slashed prices as an OPEC deal collapsed.
Dubai’s main share index gained 0.7%, with blue-chip developer Emaar Properties rising 1.7%, while sharia-compliant lender Dubai Islamic Bank finished 0.8% higher.
Elsewhere, Amanat Holding was up 0.7%, extending gains from the previous session.
On Monday, the Dubai-listed healthcare company said it had bought long-term care specialist Cambridge Medical and Rehabilitation Center for an enterprise value of $232 million from private equity firm TVM Capital Healthcare.
In Abu Dhabi, the index added 0.8%, buoyed by a 1.8% gain in the country’s largest lender First Abu Dhabi Bank.
OPEC Production Plunges as Saudis Deliver Extra Oil Cutbacks - Bloomberg
OPEC Production Plunges as Saudis Deliver Extra Oil Cutbacks - Bloomberg
OPEC’s crude production plunged last month as Saudi Arabia delivered extra cutbacks intended to clear the remnants of a global supply glut.
Output from the group fell by 920,000 barrels a day -- the biggest drop in eight months -- to 24.87 million a day, according to a Bloomberg survey. As promised, the kingdom slashed its production by almost 1 million barrels a day, or about 11%.
The Organization of Petroleum Exporting Countries and its allies have been constricting oil supplies since the pandemic crushed demand almost a year ago. To disperse the lingering stockpile surplus, the Saudis pledged extra reductions during February and March. Their efforts have paid off, reviving oil prices back to pre-crisis levels above $60 a barrel in London.
The 23-nation coalition will meet on Thursday to decide whether it can relax some of the measures in April. It’s widely expected they’ll add 500,000 barrels a day of the 7 million barrels still offline, and that Riyadh will confirm the expiry of its additional million-barrel curb.
OPEC’s crude production plunged last month as Saudi Arabia delivered extra cutbacks intended to clear the remnants of a global supply glut.
Output from the group fell by 920,000 barrels a day -- the biggest drop in eight months -- to 24.87 million a day, according to a Bloomberg survey. As promised, the kingdom slashed its production by almost 1 million barrels a day, or about 11%.
The Organization of Petroleum Exporting Countries and its allies have been constricting oil supplies since the pandemic crushed demand almost a year ago. To disperse the lingering stockpile surplus, the Saudis pledged extra reductions during February and March. Their efforts have paid off, reviving oil prices back to pre-crisis levels above $60 a barrel in London.
The 23-nation coalition will meet on Thursday to decide whether it can relax some of the measures in April. It’s widely expected they’ll add 500,000 barrels a day of the 7 million barrels still offline, and that Riyadh will confirm the expiry of its additional million-barrel curb.
#UAE, #SaudiArabia sovereign borrowings to hit $51.4bln this year: S&P | ZAWYA MENA Edition
UAE, Saudi Arabia sovereign borrowings to hit $51.4bln this year: S&P | ZAWYA MENA Edition
Sovereign borrowings in the UAE and Saudi Arabia will remain elevated this year, although slightly down by just $6.6 billion to $51.4 billion, according to the latest analysis by S&P Global Ratings.
Gross commercial long-term borrowing in Abu Dhabi is forecast to reach $10 billion, compared to $15 billion in 2020, while Sharjah is likely to borrow $4.1 billion, up from $3 billion last year. In Saudi Arabia, sovereign borrowing is forecast to reach $37.3 billion, a little less than last year’s $40 billion.
Overall, emerging markets’ (EM) commercial debt issuance in Europe, Middle East and Africa (EMEA) will reach $571 billion, lower by $100 billion when compared with 2020.
“We expect commercial debt issuance to remain elevated during 2021, albeit down by just over $100 billion… as fiscal support is only gradually withdrawn,” S&P said in a report released on Tuesday.
Sovereign borrowings in the UAE and Saudi Arabia will remain elevated this year, although slightly down by just $6.6 billion to $51.4 billion, according to the latest analysis by S&P Global Ratings.
Gross commercial long-term borrowing in Abu Dhabi is forecast to reach $10 billion, compared to $15 billion in 2020, while Sharjah is likely to borrow $4.1 billion, up from $3 billion last year. In Saudi Arabia, sovereign borrowing is forecast to reach $37.3 billion, a little less than last year’s $40 billion.
Overall, emerging markets’ (EM) commercial debt issuance in Europe, Middle East and Africa (EMEA) will reach $571 billion, lower by $100 billion when compared with 2020.
“We expect commercial debt issuance to remain elevated during 2021, albeit down by just over $100 billion… as fiscal support is only gradually withdrawn,” S&P said in a report released on Tuesday.
More than 19,000 DIFC employees sign up for new savings scheme in one year | The National
More than 19,000 DIFC employees sign up for new savings scheme in one year | The National
The Dubai International Financial Centre's workplace savings scheme has signed up 19,182 employees from 1,187 companies since it was launched a year ago.
The DIFC Employee Workplace Savings (Dews) plan built up more than $127 million worth of assets under management as of February 1, 2021, the free zone said on Tuesday.
The Dews plan, launched in February 2020 for DIFC-based employees, restructured the gratuity benefit scheme and requires employers in the free zone to make monthly contributions to a professionally managed investment scheme.
A substantial number of employees have also chosen to make additional voluntary contributions to the Dews plan, the statement added.
The Dubai International Financial Centre's workplace savings scheme has signed up 19,182 employees from 1,187 companies since it was launched a year ago.
The DIFC Employee Workplace Savings (Dews) plan built up more than $127 million worth of assets under management as of February 1, 2021, the free zone said on Tuesday.
The Dews plan, launched in February 2020 for DIFC-based employees, restructured the gratuity benefit scheme and requires employers in the free zone to make monthly contributions to a professionally managed investment scheme.
A substantial number of employees have also chosen to make additional voluntary contributions to the Dews plan, the statement added.
Kuwaiti cabinet proposes new amendments to debt law, MP says | Reuters
Kuwaiti cabinet proposes new amendments to debt law, MP says | Reuters
The Kuwaiti government has proposed new amendments to the country’s public debt law, including capping borrowing to maximum 60% of gross domestic product, the head of a parliamentary finance committee told Reuters.
The government presented the proposed amendments to the parliamentary committee on Monday, Ahmed al-Hamad said. Another proposed change regards the duration of debt: the government would like no maturity limit, he said, while the existing debt law has a maximum limit of 30 years.
Kuwait is facing a liquidity squeeze because of a standoff between government and parliament over the public debt law.
The Kuwaiti government has proposed new amendments to the country’s public debt law, including capping borrowing to maximum 60% of gross domestic product, the head of a parliamentary finance committee told Reuters.
The government presented the proposed amendments to the parliamentary committee on Monday, Ahmed al-Hamad said. Another proposed change regards the duration of debt: the government would like no maturity limit, he said, while the existing debt law has a maximum limit of 30 years.
Kuwait is facing a liquidity squeeze because of a standoff between government and parliament over the public debt law.
Financials boost #Saudi; oil slips ahead of OPEC meet | Reuters
Financials boost Saudi; oil slips ahead of OPEC meet | Reuters
Financials helped put Saudi stocks on course for their biggest daily percentage gain in over three weeks on Tuesday as other Gulf markets traded mixed, with oil prices falling ahead of an OPEC meeting.
With worries over slowing demand in China dampening sentiment, markets traded on expectations that OPEC will agree to raise oil supply at Thursday’s meeting, and Saudi index heavyweight Saudi Aramco fell marginally.
Saudi Arabia’s benchmark index rose 1.1%, with materials stocks also helping to underpin gains.
Qatar’s benchmark index fell 0.5%, dragged down by industrial stocks, while sentiment in Qatari banks remained upbeat a day after Moody’s said that their profits will remain resilient in 2021.
The Gulf’s largest lender, Qatar National Bank, rose 0.7% while Qatar Islamic Bank climbed 1.1%.
Dubai’s main share index traded flat.
Damac Properties rose 2.5% a day after its board said it will consider increasing strategic stake in Damac International.
In Abu Dhabi, the index gained 0.8%, boosted by a gain in financial stocks.
Financials helped put Saudi stocks on course for their biggest daily percentage gain in over three weeks on Tuesday as other Gulf markets traded mixed, with oil prices falling ahead of an OPEC meeting.
With worries over slowing demand in China dampening sentiment, markets traded on expectations that OPEC will agree to raise oil supply at Thursday’s meeting, and Saudi index heavyweight Saudi Aramco fell marginally.
Saudi Arabia’s benchmark index rose 1.1%, with materials stocks also helping to underpin gains.
Qatar’s benchmark index fell 0.5%, dragged down by industrial stocks, while sentiment in Qatari banks remained upbeat a day after Moody’s said that their profits will remain resilient in 2021.
The Gulf’s largest lender, Qatar National Bank, rose 0.7% while Qatar Islamic Bank climbed 1.1%.
Dubai’s main share index traded flat.
Damac Properties rose 2.5% a day after its board said it will consider increasing strategic stake in Damac International.
In Abu Dhabi, the index gained 0.8%, boosted by a gain in financial stocks.
#Dubai Real Estate Market May Bottom Out Next Year, S&P Says - Bloomberg video
Dubai Real Estate Market May Bottom Out Next Year, S&P Says - Bloomberg
Property market in Dubai may “bottom out” next year after weathering a tough 2020, according to S&P Global Ratings.
“We already had a supply and demand imbalance in the market even before the pandemic, and after Covid-19 the situation just got worse,” S&P analyst Sapna Jagtiani told Bloomberg TV on Tuesday. Prices of residential and office spaces in the city are expected to “somewhere bottom out in 2022,” she said.
A property glut and faltering demand in the Middle East’s business hub have driven prices down by more than a third since the market peaked some seven years ago. The decline has been made worse by the coronavirus pandemic.
Sapna Jagtiani, director & lead analyst for GCC corporates at S&P Global Ratings, discusses
Property market in Dubai may “bottom out” next year after weathering a tough 2020, according to S&P Global Ratings.
“We already had a supply and demand imbalance in the market even before the pandemic, and after Covid-19 the situation just got worse,” S&P analyst Sapna Jagtiani told Bloomberg TV on Tuesday. Prices of residential and office spaces in the city are expected to “somewhere bottom out in 2022,” she said.
A property glut and faltering demand in the Middle East’s business hub have driven prices down by more than a third since the market peaked some seven years ago. The decline has been made worse by the coronavirus pandemic.
Dubai’s population drop of 8.4% for 2020, which was the steepest decline in the Gulf region,
and the reasons behind the decline.
She speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
#Qatar's Masraf Al Rayan to double sukuk programme size to $4bln | ZAWYA MENA Edition
Qatar's Masraf Al Rayan to double sukuk programme size to $4bln | ZAWYA MENA Edition
Qatar-based Islamic bank, Masraf Al Rayan (MAR) has received shareholders' approval for doubling its sukuk issue size to a maximum of $4 billion.
The general assembly on Monday agreed to increase the size of sukuk issuance programme from its current size of $2 billion, provided that the total issuances do not exceed 100 percent of the bank's capital and reserves.
Shareholders also approved the board's proposal regarding a cash dividend of 0.170 Qatari rial per share for the fiscal year 2020, representing 17 percent of the paid-up capital.
The lender last month reported preliminary net profit of 2.17 billion rials, nearly unchanged from the year-ago period.
MAR last month said it plans to merge with Al Khalij Commercial Bank. Upon the completion of the merger, expected by second half of 2021, Al Khalij Commercial Bank will be dissolved and MAR will be the surviving entity, continuing to operate as an Islamic bank.
Qatar-based Islamic bank, Masraf Al Rayan (MAR) has received shareholders' approval for doubling its sukuk issue size to a maximum of $4 billion.
The general assembly on Monday agreed to increase the size of sukuk issuance programme from its current size of $2 billion, provided that the total issuances do not exceed 100 percent of the bank's capital and reserves.
Shareholders also approved the board's proposal regarding a cash dividend of 0.170 Qatari rial per share for the fiscal year 2020, representing 17 percent of the paid-up capital.
The lender last month reported preliminary net profit of 2.17 billion rials, nearly unchanged from the year-ago period.
MAR last month said it plans to merge with Al Khalij Commercial Bank. Upon the completion of the merger, expected by second half of 2021, Al Khalij Commercial Bank will be dissolved and MAR will be the surviving entity, continuing to operate as an Islamic bank.
#Saudi recovery remains weak; economy to grow at 2.3% this year | ZAWYA MENA Edition
Saudi recovery remains weak; economy to grow at 2.3% this year | ZAWYA MENA Edition
The slow start to the vaccine rollout in Saudi Arabia, tightening of COVID-19 restrictions and the kingdom’s voluntary oil output cuts in February and January have weighed on activity, said Capital Economics in a new report.
A sustained recovery will be delayed until at least till the middle of the year with the result that the Saudi economy is likely to grow by just 2.3 percent this year, noted James Swanston, MENA economist at the consultancy.
Point of sale transactions and ATM withdrawals figures, proxies for consumer spending, fell at their fastest pace since August in January. At the same time, growth in local deliveries of cement, an indicator of construction activity, slowed from 9.0 percent year-on-year (y-o-y) in December to 5.6 percent y-o-y in January.
On a more positive note, private sector credit growth picked up from 14 percent y-o-y at the end of last year to 14.4 percent y-o-y in January. And the whole economy PMI for January edged up from 57.0 in December to 57.1 as the forward-looking components of the survey turned more optimistic, the report said.
The slow start to the vaccine rollout in Saudi Arabia, tightening of COVID-19 restrictions and the kingdom’s voluntary oil output cuts in February and January have weighed on activity, said Capital Economics in a new report.
A sustained recovery will be delayed until at least till the middle of the year with the result that the Saudi economy is likely to grow by just 2.3 percent this year, noted James Swanston, MENA economist at the consultancy.
Point of sale transactions and ATM withdrawals figures, proxies for consumer spending, fell at their fastest pace since August in January. At the same time, growth in local deliveries of cement, an indicator of construction activity, slowed from 9.0 percent year-on-year (y-o-y) in December to 5.6 percent y-o-y in January.
On a more positive note, private sector credit growth picked up from 14 percent y-o-y at the end of last year to 14.4 percent y-o-y in January. And the whole economy PMI for January edged up from 57.0 in December to 57.1 as the forward-looking components of the survey turned more optimistic, the report said.
Oil slides 1% on fears over higher OPEC supply, slower China demand | Reuters
Oil slides 1% on fears over higher OPEC supply, slower China demand | Reuters
Oil prices slid more than 1% on Tuesday as expectations that OPEC would agree to raise oil supply in a meeting this week weighed on sentiment, already hit by concerns over slowing Chinese demand.
Brent crude dropped 80 cents, or 1.3%, to $62.89 a barrel by 0754 GMT, after losing 1.1% the previous day. U.S. West Texas Intermediate (WTI) crude fell 69 cents, or 1.1%, to $59.95 a barrel, having lost 1.4% on Monday.
They both touched the lowest in more than 6 days, extending losses that started late last week.
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, said Satoru Yoshida, a commodity analyst with Rakuten Securities.
“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.
Oil prices slid more than 1% on Tuesday as expectations that OPEC would agree to raise oil supply in a meeting this week weighed on sentiment, already hit by concerns over slowing Chinese demand.
Brent crude dropped 80 cents, or 1.3%, to $62.89 a barrel by 0754 GMT, after losing 1.1% the previous day. U.S. West Texas Intermediate (WTI) crude fell 69 cents, or 1.1%, to $59.95 a barrel, having lost 1.4% on Monday.
They both touched the lowest in more than 6 days, extending losses that started late last week.
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, said Satoru Yoshida, a commodity analyst with Rakuten Securities.
“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.