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Oil extends losses on worry over possible supply increase from OPEC

Published 02/03/2021, 02:44
Updated 02/03/2021, 02:48
© Reuters
LCO
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CL
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* OPEC+ meets on Thursday to discuss output
* OPEC output drops in Feb on additional Saudi cut -survey
* China's weak factory activity raises fears over slow oil
demand

By Yuka Obayashi
TOKYO, March 2 (Reuters) - Oil prices fell more than 1% on
Tuesday, extending losses that began last week, as investors
unwound long positions on concern that OPEC may agree to
increase global supply in a meeting this week and Chinese demand
may be slipping.
Brent crude LCOc1 dropped 78 cents, or 1.2%, to $62.91 a
barrel by 0138 GMT, after losing 1.1% the previous day. U.S.
West Texas Intermediate (WTI) crude CLc1 slid 74 cents, or
1.2%, to $59.90 a barrel, having lost 1.4% on Monday.
Investors are worried the Organization of the Petroleum
Exporting Countries and its allies, a group known as OPEC+, will
boost oil output, said Hiroyuki Kikukawa, general manager of
research at Nissan Securities.
"Oil prices remained under pressure as investors were making
position adjustments ahead of the OPEC meeting," he said.
The group meets on Thursday and could discuss allowing as
much as 1.5 million barrels per day (bpd) of crude back into the
market.
OPEC oil output fell in February as a voluntary cut by Saudi
Arabia added to reductions agreed to under the previous OPEC+
pact, a Reuters survey found, ending a run of seven consecutive
monthly increases.
Market sentiment was also dampened by weak manufacturing
data out of China, Nissan Securities' Kikukawa said.
China's factory activity growth slipped to a nine-month low
in February, which may curtail Chinese crude demand and pressure
oil prices.

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