Oil prices rose on Tuesday as markets weighed supply cuts for August by top exporters Saudi Arabia and Russia against the backdrop of an uncertain global economic outlook.
Brent crude futures climbed 32 cents, or 0.42%, to $75.73 a barrel by 08:05 GMT. U.S. West Texas Intermediate crude was at $70.96 a barrel, up 32 cents, or 0.45%.
On Monday, Saudi Arabia said it would extend its voluntary output cut of 1 million barrels per day (bpd) to August, while Russia and Algeria volunteered to lower their output and export levels for August by 500,000 bpd and 20,000 bpd respectively.
If the moves by the independent states are successful, it will result in a combined reduction of 5.36 million bpd versus August 2022 levels. PVM analyst, Tamas Varga confirmed earlier that chances of the reduction to continue are high as several member countries are unable to fulfil their quotas.
An initial rally which was organized to analyze oil benchmarks indicated a static position of 1% in the previous session, preceded by a gloomy macroeconomic outlook.
According to recent business surveys, China, the world’s biggest oil importer and other Global Strategic Petroleum Reserves (GSPR) states have stymied the smooth operation of global factory activity on account of sluggish demand.
This broader uncertainty will likely overshadow the OPEC+ effort to tighten supply, some analysts said.
