Reuters: oil prices fall amid rising supply concerns

On Tuesday, oil prices dropped from a two-week high as concerns over rising supplies weighed on the market. This decline came despite earlier optimism among traders following a pause in US-China trade tensions after both countries temporarily rolled back import tariffs, Reuters reported.

Washington and Beijing agreed to slash trade duties for at least 90 days, boosting oil prices on Monday. However, key disagreements between the two sides remain, including the US trade deficit with China, the agency notes.

Additionally, market participants view growing energy supplies as the key factor behind falling oil prices. OPEC's oil production rose more than expected in April, compared to previous forecasts. Output in May is expected to increase by 411,000 barrels per day.

Meanwhile, expert opinions on US oil inventories were divided, according to the agency's poll. While the survey results suggested American crude stocks likely declined last week, Macquarie strategist Walt Chancellor anticipates a 7.6-million-barrel increase.