2019.06.1806:41:00UTC+00Oil Extends Losses For Second Day

Oil prices were moving lower for a second straight session on Tuesday as economic concerns overshadowed optimism that OPEC and other producers such as Russia would extend an output cut deal.

Benchmark Brent crude declined 0.9 percent to $60.38 a barrel while U.S. West Texas Intermediate (WTI) crude futures were down 0.7 percent at $51.81 a barrel. The downside remained capped by tensions in the Middle East after last week's tanker attacks.

A key indicator of the health of the U.S. manufacturing sector tanked in June, suggesting that business sentiment around new tariffs is starting to bite.

The New York Federal Reserve said on Monday that its gauge of business growth in New York State posted a record fall in June to hit its weakest level in more than 2-1/2 years, suggesting an abrupt contraction in regional activity.

Demand concerns are weighing on oil prices, offsetting rising tensions in the Middle East following attacks on oil tankers in the Gulf of Oman last week.

Acting U.S. Defense Secretary Patrick Shanahan announced on Monday the U.S. will send 1,000 additional U.S. forces and more military resources to the Middle East amid concerns about a threat from Iran.

Prices have fallen nearly 20 percent since 2019 highs reached in April amid no end in sight for a solution to the U.S.-China trade war.

Putting further downward pressure on oil, the U.S. energy department said on Monday that Shale oil output from seven major shale formations is expected to reach a record in July.