Oil is sliding ahead of this week's OPEC meeting

pulse

June 19, 2018 4:17 PM

Oil slid Tuesday ahead of a meeting among OPEC and other supply-curbing countries later this week, where oil ministers are expected to ease output cuts, and amid an escalating trade fight between the US and China.

OPEC is expected to roll back supply cuts at a meeting later this week.
China has threatened to impose tariffs on US crude.

West Texas Intermediate was down 2.14% to $64.42 per barrel at 11 a.m. ET. Brent, the international benchmark, shed more than a dollar to $74.48 a barrel. Crude has been selling off over the last week amid expectations for higher output.

Saudi Arabia, the unofficial leader of OPEC, and Russia, which leads non-OPEC countries in coordinating supply cuts, have been pushing for a rollback of production amid falling output in several member countries. The cartel has also reportedly faced pressure from the US to begin easing output constraints.

An escalating trade fight between the US and China also seems to be weighing on prices. After President Donald Trump said his administration could impose tariffs on an additional $200 billion worth of Chinese goods Monday, Beijing threatened to strike back with tariffs on a range of US products, including crude imports.

"A lack of appetite for risk amid the US-trade dispute has resulted inprices depreciating today," said Lukman Otunuga, an analyst at FXTM.

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