Crude oil prices were down to begin Tuesday as global oil demand is expected to remain weak and global institutions revising down their oil price and economic growth forecasts.
International benchmark Brent crude was trading at $60.78 per barrel at 0612 GMT for a 0.3% loss after closing Monday at $60.94 a barrel and losing 2.07% on the previous session.
American benchmark West Texas Intermediate (WTI) was at $51.79 a barrel at the same time for a 0.2% decline after falling 2.02% on the previous day and closing at $51.87 per barrel.
Global oil demand is expected to remain weak in the second half of the year with U.S.-China trade war looming and global economic growth to pace down.
U.S.-based rating agency Fitch Ratings said Monday in a statement Brent fell to $60 per barrel in early June “due to deteriorating expectations for global economic growth and increased trade war risks.”
The agency said it now expects global economic growth to decrease from 3.2% in 2018 to 2.8% in 2019, and to 2.7% in 2020, forecasting Brent to average $65 a barrel and WTI to average $57.5 per barrel this year.
Bank of America Merrill Lynch lowered its oil price estimate for the second half of 2019. The U.S.-based global banking and financial services said Monday it now expects Brent to average $63 a barrel, down from the previous forecast of $68 per barrel.