Crude oil futures were lower during mid-morning trade in Asia Tuesday as global supply-side issues continued to exert downward pressure on prices.
At 10:15 am Singapore time (0215 GMT), ICE January Brent crude futures were down 23 cents/b (0.834%) from Monday's settle at $61.97/b, while the NYMEX December light sweet crude contract fell 21 cents/b (0.33%) to $56.65/b.
"Sentiment was weighed down by supply-side issues," ANZ analysts said in a note Tuesday.
Oman's oil and gas minister Mohammed al-Rumhy said Monday there was "probably not" a need for OPEC and its allies to deepen production cuts, although adding that Oman would support an extension of the ongoing agreement that expires in March.
OPEC and 10 non-OPEC allies, including Russia and Oman, are in the midst of a 1.2 million b/d production cut agreement and are scheduled to meet December 5-6 in Vienna to decide on its future.
"There will be an indication that come March the agreement ought to be extended," Rumhy told reporters on the sidelines of an industry conference in Abu Dhabi. "I will support such discussions."
OPEC Secretary General Mohammed Barkindo indicated Monday that the coalition would instead focus on getting members who had yet to reach their committed levels of cuts to tighten compliance with their production quotas.
He added he did not see an economic recession looming that would necessitate any drastic OPEC action to prevent a major sell-off in oil prices, despite many forecasts of slowing GDP growth.
On the demand side, market participants remained concerned about the progress of trade deal negotiations between the US and China, especially after US President Donald Trump's comments late last week.
Trump said Friday he had not agreed to unwind tariffs against China as part of an interim trade deal between the two countries, contradicting earlier statements.
"Markets are expected to tune in to President Trump's speech at the Economic Club of New York later today [Tuesday] for any potential clarification on progress of the Phase One trade deal," Mizuho Bank senior economist Vishu Varathan said.
As of 0215 GMT, the US Dollar Index was up 0.06% at 98.11.
