Oil prices drop due to expectations of higher OPEC supply

Oil prices drop due to expectations of higher OPEC supply

Oil prices fell beyond 1% on Tuesday on concerns that OPEC might increase oil supply this week and slow demand in China. 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. "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. Brent crude was down 33 cents, or 0. 8%, at $42. 82 a barrel by 0645 GMT, while US crude was down 38 cents, or 0. 9%, to $40. 73 a barrel. US West Texas Intermediate (WTI) crude futures were trading up 14 cents, or 0. 4%, at $37. 47 a barrel by around 0629 GMT. Brent crude was 6 cents, or 0. 2%, higher at $39. 89 a barrel. Brent crude rose 85 cents, or 2. 1%, to $41. 38 a barrel by 0645 GMT, while US crude rose 92 cents, or 2. 4%, to $39. 20. Both contracts