Oil prices fall 1% on worries over higher OPEC supply, weak China demand

Oil prices dropped over 1% on Tuesday, extending last week’s losses as hopes that OPEC would raise oil supply in a meeting this week contributed to pressure and concerns over slow-moving demand in China.

Brent crude slid 1.1%, or 70 cents, at $62.99 per barrel following a 1.1% loss on Monday. U.S. West Texas Intermediate crude dropped 1.2%, or 71 cents, at $59.93 per barrel after declining 1.4% on Monday. Both benchmarks hit their weakest levels in over a week. 

Hopes that OPEC and its allies would increase oil output from April are pushing prices lower, according to analysts. The organization meets on Thursday to assess the need for another 1.5 million bpd of crude back to the market.

OPEC oil production dropped in February as Saudi’s pledge for additional output cuts ended a seven-month consecutive increase in supply. 

Elsewhere, Chinese factory activity growth dropped to a nine-month low in February, which may curb crude demand in the country and put pressure on prices.