Oil prices stabilized on Tuesday on expectations that producer group OPEC and its allies will keep withholding supply to prevent prices from tumbling amid a broad economic slowdown which has started eating away at fuel demand growth.
Yesterday's bullish attempt has met a swift response and the oil price powerfully reversed lower.
Oil prices climbed 35% in the first four months of the year as OPEC reined in output while countries from Iran to Venezuela suffered involuntary cutbacks in supply. U.S. West Texas Intermediate (WTI) crude futures rose 11 cents to $53.37 a barrel.
Despite this, MacPherson said "there is a limit to how much longer it (OPEC+) can continue to avoid addressing the serious challenge of being squeezed out by growing US production".
However, Beijing said it will allow local governments to use proceeds from special bonds as capital for major investment projects, in a bid to support the slowing economy amid an escalating trade war with the United States.
All eyes will be on the upcoming The Organization of the Petroleum Exporting Countries (OPEC) meeting during June 25-26, when it decides its output policy for the rest of the year.
After thumb injury, Shikhar Dhawan to be under observation: BCCI
However, he took a blow to his hand from a Pat Cummins delivery early into his innings and did not field during Australia's reply. And in the eventuality of him being ruled out, India will have to get ICC technical committee permission to avail a replacement.
Novak also commented Monday on potential cooperation with Saudi Arabia over Sibur, saying the Russian company may build a plant in the Gulf kingdom.
Nonetheless, "even planned and unintentional supply restrictions of more than 4 million barrels per day (bpd) have not been able to support prices as economic considerations took over in the last two weeks", he added.
"Indeed, comments from Novak yesterday that Russian Federation is anxious about oversupply and potentially $40/bbl oil in the second half of the year has further strengthened our view that OPEC+ will agree on an extension to their production cuts".
While the talk of prolonged supply restraint is supporting prices, concern about slowing demand and economic growth has had a large impact on sentiment.
FGE said global crude oil demand growth could drop below 1 million barrels per day (bpd) in 2019, down from previous expectations of 1.3 to 1.4 million bpd.
Market participants await industry data on USA crude stockpiles, due out at 4:30 p.m. EDT (2030 GMT), that is expected to show inventories fell 500,000 barrels last week from almost two-year highs.