Stocks didn't join in on oil's rally on Monday but they certainly felt the pinch from its downturn a day later.
Benchmark indexes spent the day in the red, returning to session lows in the final hour. The S&P 500 was down 1.1%, the Dow Jones Industrial Average fell 0.6%, and the Nasdaq slid 1.3%. It was the first time all three indexes closed down in six trading days.
Crude was a drag despite lowered output forecasts from a top energy watchdog. The Energy Information Administration expects U.S. crude output of 8.67 million barrels a day this year, down from a previous estimate of 8.69 million. The guidance should come as some relief to commodity traders concerned over a supply glut. Prices were already lower on Tuesday after analysts at Goldman Sachs warned the current push higher is unsustainable.
"Energy needs lower prices to maintain financial stress to finish the rebalancing process," the analysts wrote in a note. "Otherwise, an oil price rally will prove self-defeating, as it did last spring."
Worries over negotiations between major oil producers also hit oil markets after Kuwait said it would not submit to an output freeze unless all countries, including reluctant Iran, were in agreement. The Kuwaiti oil minister said he intended to sell every barrel produced until an agreement was made.
Worries over China also pressured oil following trade data that came in well below estimates. The world's second-largest economy on Tuesday reported a 25.4% drop in exports in February on weaker global demand and a week-long business shutdown during the Lunar New Year holiday. Exports were down more than double a month earlier.