Crude oil prices have weakened on Tuesday as OPEC and its allies are expected to decide how to proceed with the collective production cuts from April onwards. Futures in New York sank below $60 a barrel, dropping for a third day.
Both global crude benchmarks Brent and US West Texas Intermediate (WTI) were down more than one percent on Tuesday, trading at $62.89 and $59.92 per barrel at 08:42 GMT, respectively.
The oil-producing alliance led by Russia and Saudi Arabia will meet on Thursday to decide on easing supply curbs after prices posted their best-ever start to a year. Saudi Arabia has already called on the producers to remain “extremely cautious” even as signs of tightening emerge.
Statistics show the kingdom’s unilateral additional cut in oil production sent the total OPEC output down by 870,000 barrels per day (bpd) in February, the first monthly drop in the alliance’s production since June last year.
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Given the recent rally in oil prices, analysts expect the group to lift production in some form and the Saudis to reverse their unilateral cut. Oil prices have been roaring back after a tumultuous 2020, when Covid-19 crippled demand for the commodity around the world. (RT)
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