LONDON. – Oil recouped some of its early losses yesterday, echoing a modest recovery in global equities, but concern about the outlook for global growth and evidence of yet more crude supply kept gains in check.
The Organisation of the Petroleum Exporting Countries, with partner countries such as Russia, meets today to discuss a potential cut in crude output.
In the face of a growing supply overhang, it will be keen to avert the kind of build-up in global oil inventories that sent prices on a 19-month long decline starting in late 2014.
After reaching a truce on trade over the weekend, the United States and China appeared once again to be at loggerheads after President Donald Trump threatened “major tariffs” on Chinese imports if the two failed to reach an effective deal.
Brent crude futures LCOc1 were down 22 cents on the day at $61,86 a barrel by 1312 GMT, but above a session low of $60,80, while US futures CLc1 had eased 6 cents to $53,19.
The oil price rallied by nearly 10 percent over Monday’s and Tuesday’s sessions, but has now retraced half of those gains.