Oil prices fell on Tuesday after touching 2019 highs on Monday. US-China anxiety rose after reports of pushback form China on the US trade demands. The dispute between the two largest economies has been the biggest factor impacting global growth.
Oil prices have risen thanks to the efforts of the OPEC+ how agreed to keep their production capped. With the April ministerial meeting cancelled the agreement will stand unchanged until June, with a high probability of an extension given the support it enjoys from the de facto leaders Saudi Arabia and Russia who although has shown some doubt remains onboard with the cuts.
The balance between rising US production and the efforts from OPEC+ to keep prices stable is sensitive to discord amongst the producers that are part of the agreement. Losing Russia would be major blow to the efforts of the group and would put oil prices under pressure.
WTI failed to reach the $60 price level, before profit taking and downward pressure took the price of oil to below $59 ahead of the release of weekly US inventories. US crude stocks are expected to show a 1.75 million barrel buildup on Wednesday.