China-Singapore Jingwei Client, March 3, according to Reuters Chinese website, oil prices fell to the lowest in two weeks on Tuesday, due to market expectations, as the economy began to recover from the new crown pneumonia crisis, the Organization of Petroleum Exporting Countries (OPEC) and its allies formed The OPEC+ alliance will relax supply restrictions at a meeting later this week.
According to the report, OPEC Secretary General Barkin said that the organization believes that the outlook for oil demand is generally optimistic, especially in Asia.
Brent crude oil futures fell 0.99 US dollars, or 1.6%, to settle at 62.70 US dollars per barrel, the lowest closing level since February 12.
Brent crude oil has fallen by about 7% from the 13-month high it hit last week.
US crude oil futures (WTI) fell 0.89 US dollars to 59.75 US dollars per barrel, or 1.5%, the lowest closing level since February 19.
Since February 25, hitting its highest level since May 2019, US crude oil has fallen by about 6%.
The report believes that the rise in oil prices has subsided, because OPEC+ is expected to increase oil production from April, reducing the intensity of the sharp cuts in supply last year.
Bjornar Tonhaugen, director of Rystad Energy's oil market, said, "The oil market has finally reached the stage of suggesting a recovery, because this is the first time in a year, and everyone expects OPEC+ to have a reason to increase production."
OPEC+ will hold a meeting on Thursday, where it may discuss an increase in production by as much as 1.5 million barrels per day.
Analysts predict that US crude oil inventories fell by 900,000 barrels last week, after an increase of 1.3 million barrels in the previous week.
The American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA) will release weekly inventory reports later on Tuesday and Wednesday, respectively.
(Zhongxin Jingwei APP)