Oil futures slumped Tuesday, more than erasing gains from a day earlier that followed word of extended OPEC-led production cuts, with investors unable to shake demand worries tied to a vulnerable global economy and trade negotiations.
Analysts said the expected production extension packed few surprises, failing to offset the clouds forming on the demand side.
On Tuesday, August West Texas Intermediate crude fell $2.84, or 4.8%, to settle at $56.25 a barrel on the New York Mercantile Exchange. On Monday, prices settled 1.1% higher on expectations that OPEC would extend its output-cut agreement. It announced the extension after Nymex futures settled.
International benchmark September Brent finished Tuesday at $62.40, down $2.66, or 4.1%, on ICE Futures Europe.
Both crude benchmarks marked the lowest finish for a front-month contract since June 19, according to Dow Jones Market Data.
Source : Marketwatch