Oil prices rebounded Tuesday, loosely tracking a recovery in equities, but were held in check by uncertainty surrounding a key supply decision by OPEC and its allies.
“With bulls lacking a major catalyst, the market could remain in a funk until month’s end as [the Organization of the Petroleum Exporting Countries’] production restrictions vie with continued uncertainty over U.S.-China trade tensions,” said Stephen Innes, managing partner at Vanguard Markets, in a daily note.
Oil futures finished lower on Monday as investors focused on worries about slowing global growth after weaker import data from China and doubts about Russia’s willingness to extend production curbs beyond their expiration this month. The Trump administration’s decision to call off plans to raise tariffs on Mexican goods has so far underpinned bullish sentiment for oil prices.
West Texas Intermediate crude for July delivery CLN19, +0.47% on the New York Mercantile Exchange gained 25 cents, or 0.5%, to $53.51 a barrel, while August Brent crude BRNQ19, +0.13% rose 21 cents, or 0.3%, to $62.50 a barrel on ICE Futures Europe.
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