Oil Stabilizes Amid Production Cutbacks

Oil prices stabilized on Tuesday, as markets were affected by supply difficulties due to planned production cuts in August by the largest crude exporters, Saudi Arabia and Russia, amid economic data suggesting weak demand for crude. Brent crude futures rose by 22 cents, or 0.3%, to $74.87 per barrel by 00:33 GMT. West Texas Intermediate (WTI) crude was recorded at $70.06 per barrel, an increase of 27 cents or 0.3%. U.S. markets were closed on Tuesday due to a holiday. The two benchmarks had seen a 1% decline at the previous session's close. On Monday, Saudi Arabia announced it would extend its voluntary production cut of one million barrels per day into August, according to the Saudi Press Agency. Russian Deputy Prime Minister Alexander Novak noted that Russia would also reduce its oil exports by 500,000 barrels per day in August. These reductions amount to 1.5% of global supplies, raising total production cut commitments from OPEC+ producers to 5.16 million barrels per day, as Riyadh and Moscow seek to support prices. However, markets are concerned about oil demand, as company surveys indicated a slowdown in global factory activity due to reduced demand in China and Europe.