Oil price slipped lower in the previous session, which was undermined by a weak manufacturers survey out of that was conducted by China and despite the rumors that the OPEC-led crude oil output cuts could be extended when oil producers meet later this month.
NYMEX crude for June delivery was down by 10 cents and was being traded at $49.23 per barrel; London Brent crude for the July Delivery was also down by 13 cents and was being sold at %51.92.
Also pressing down on the prices was a faster than expected slowdown of growth in China’s manufacturing sector in April. An official survey was released on Sunday that producer price inflation cooled and policy maker’s effort to cover up the financial risks the economy is currently experiencing.
The price of oil has been in the bear for three consecutive weeks. Inventories remain high, and the market remains stuck in the rut that it fell in to 2014 when problem of the oversupply was fully acknowledged.
The Organization of the Petroleum Exporting Countries (OPEC) will meet this month to discuss the arrangements for a new oil supply policy. If OPEC agrees to extend the cuts, then the bloated global inventories could drain by the end of the year, a Reuters’ poll of economists and analysts showed.
Saudi Arabia’s Energy Minister Khalid al-Falih said on Saturday that there was a agreement with Central Asia over oil markets and production levels.
The U.S. President Donald Trump on Sunday contacted with allies in Asia in order to secure the countries’ cooperation to press North Korea over its nuclear and missile programs.