BY Bunmi Aduloju
Oil prices fell on Tuesday ahead of the meeting of the Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+.
At 9.00 GMT+1, Brent crude plunged 0.37 percent to $99.66 a barrel, while West Texas Intermediate (WTI) crude fell 0.01 percent to $93.88 a barrel.
The OPEC+ meeting, scheduled to hold on Wednesday, will decide the volume of oil output for September.
“Crude prices tumbled after a wealth of factory activity data suggested the world is headed towards a giant global economic contraction, and on expectations for more oil output following a very good earnings season for oil companies,” Edward Moya, a senior market analyst from OANDA, told Reuters in a note.
Analysts at Haitong Futures said: “The upward momentum of oil prices has been gradually fading … Once the supply and demand situation shows any sign of further deterioration, oil is likely to lead the decline among commodities.”
In a Reuters survey, two of eight OPEC+ sources said there would be a modest increase for September — others said output is likely to remain unchanged.
The organisation had approved the plans to add 648,000 barrels of oil per day for August.
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