Oil prices fell around 1 percent on Tuesday as traders weighed the prospect of additional OPEC+ production and the restoration of crude output in the U.S. after Hurricane Ida.
Benchmark Brent crude futures fell 0.9 percent to $71.59 a barrel, while U.S. crude futures were down 1.2 percent at $68.39.
The Organization of Petroleum Exporting Countries and its allies will meet on Wednesday amid expectations they will agree to go ahead with plans to add another 400,000 bpd of supply each month through December.
Kuwait’s oil minister said on Sunday that plan could be reconsidered amid concerns about raging COVID-19 infections in Asia limiting fuel demand.
Traders weighed the prospect of extended refinery outages and consequently reduced crude demand in the aftermath of Hurricane Ida hitting the U.S. Gulf Coast.
Hurricane Ida hit output at six refineries in Louisiana that process almost 2 million barrels per day of crude, around 12 percent of U.S. refining capacity.
Oil prices were also weighed down by weak data from China, where the services sector contracted in August for the first time since the height of the pandemic early last year.
China’s factory activity also expanded at a slower pace in August as businesses and the broader economy came under increasing pressure due to domestic COVID-19 outbreaks, high raw material prices and slowing exports.