Oil prices increased on Tuesday despite global economic uncertainty, as top oil exporters Saudi Arabia and Russia announced supply cuts for August.
Brent crude futures rose by 0.42% to $75.73 a barrel, while U.S. West Texas Intermediate crude increased by 0.45% to $70.96 a barrel.
Saudi Arabia extended its voluntary output cut of 1 million barrels per day 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. However, these efforts may be overshadowed by the current gloomy macroeconomic outlook, with global factory activity slowing down due to sluggish demand in China and Europe, and U.S.
manufacturing falling further in June. Despite the supply cuts, some analysts predict that oil prices will remain within the $65 to $70 range.
