A slowdown in economic growth typically takes a toll on demand for crude oil.
Saudi Energy Minister Khalid al-Falih said on Monday a consensus was emerging among producers to continue working "to sustain market stability" in the second half of the year.
Oil prices edged higher on Monday after reassurances from top oil exporter Saudi Arabia offered some respite from last week's heavy losses as deepening USA trade wars fanned fears of a global economic slowdown.
The Middle East dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC), together with some allies including Russian Federation, has been withholding supply since the start of the year to prop up the market.
Oil has fallen nearly 20% from a peak in late April, taking it to the brink of a bear market, as trade relations between Washington and Beijing soured and the White House announced tariffs on Mexican goods.
U.S. West Texas Intermediate (WTI) crude futures were at $52.94 per barrel on the New York Mercantile Exchange, down 31 cents, or 0.6%.
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Further pressuring oil prices and undermining OPEC's efforts to tighten the market has been surging United States output to record highs, leading to more of its crude being exported. In short, oil supplies are up and prices are down.
While the producers will meet later this month or early July in Vienna to decide on the future of output cuts, Saudi Arabia, the de-facto leader of the cartel, has all but given its go-ahead for an extension. "But OPEC may pledge to keep compliance with the pledged cuts to 100%, not overshoot it". Prices have fallen dramatically since today's 10:30 AM EST release of the EIA report as traders have piled on the short side of WTI. Once OPEC's third-largest producer, Iran's oil exports halved on month to 400,000 barrels per day in May, according to a report on website oilprice.com.
U.S. private job creation eased substantially in May. However, markets are not convinced. "It is most likely that no deal will happen". "At first, oil prices were increasing because Iran and Venezuela reset their exports, and now we see that the oil price is declining because the Americans have increased their shale oil production".
Saudi Arabi, however, boosted its oil production to keep OPEC's commitments to the market by maintaining an overall steady output for the cartel, keeping supplies mostly unaffected.
The US has ratcheted up pressure on Iran since a year ago after withdrawing from the 2015 nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA).
In the tug of war between demand concerns and falling supply, the latter is likely to emerge the victor.