Oil prices have declined as worries that the global economy could be slowing offset an agreement by the Organization of the Petroleum Exporting Countries (OPEC) with regard to supply cuts extension until March 2019.

Brent crude futures LCOc1 slipped 18 cents at $64.88 a barrel, while the US crude futures for August declined 20 cents at $58.89 a barrel, Reuters reported.

The producer club OPEC agreed to extend oil supply cuts until March 2020 as members overcame their differences to try to increase crude prices.

PVM analyst Tamas Varga was quoted by Reuters as saying: “It appears that the supply side of the oil equation is supportive for oil prices but demand concerns are forcing oil bulls to keep at least part of their gunpowder dry.”

OPEC, Russia and other producers, an alliance known as OPEC+, are set to meet to discuss supply cuts amid surging US production. Russia President Vladimir Putin agreed with Saudi Arabia to extend global output cuts until December 2019 or March 2020.

Meanwhile, a preliminary Reuters poll highlighted a fall in US crude oil stockpiles for a third consecutive week, thereby supporting oil prices.

London Capital Group senior market analyst Ipek Ozkardeskaya said: “Oil traders will now turn their attention to the economic data, as the weakening global activity and waning demand could again weigh on the sentiment.”

At the recent G20 summit, the US and China agreed to restart trade talks. Factory activity across much of Europe and Asia shrank in June.