Crude oil prices declined on Tuesday, extending losses from the previous session amid concerns about the outlook for energy demand on the back of recent weak trade data from China and uncertainty about U.S.-China trade negotiations.
A downward revision in global growth forecast by the International Monetary Fund and a report from the Energy Information Administration that said U.S. shale output will climb notably in November weighed as well on the commodity.
West Texas Intermediate crude oil futures for November ended down $0.78, or 1.5%, at $52.81 a barrel.
On Monday, WTI crude oil futures for November ended down $1.11, or about 2%, at $53.59 a barrel, after having gained about 3.6% last week.
According to a report from EIA, crude oil production from major U.S. shale plays will likely climb by 58,000 barrels a day in November to 8.971 million barrels a day.
Oil output from the Permian Basin is expected to rise up to 63,000 barrels a day in November from October, the report said.
The International Monetary Fund said Tuesday that the global economy is set to expand at the slowest pace in a decade this year amid weak manufacturing momentum, and rising trade and geopolitical tensions.
The global lender cut the growth forecast for this year to 3% from 3.3% projected in April, in its latest World Economic Outlook.
The pace of growth this year will be the lowest since 2008-09 global financial crisis, the report said. The projection for 2020 was lowered to 3.4% from 3.6% forecast in April.
Markets now await weekly oil reports from the American Petroleum Institute, due later in the day, and the Energy Information Administration, due Wednesday morning.
The material has been provided by InstaForex Company – www.instaforex.com