ANKARA (AA) – Oil prices edged lower on Tuesday after traders cashed out on high prices over tightening market supplies a day before the OPEC+ voluntary cuts come online, while persistent demand fears in China blunted the price momentum.
International benchmark Brent crude traded at $85.24 per barrel at 10.10 a.m. local time (0710 GMT), a 0.22% loss from the closing price on Monday of $85.43 per barrel.
The American benchmark West Texas Intermediate (WTI) traded at the same time at $81.64 per barrel, down 0.19% from the session close of $81.80 per barrel on Monday.
Brent oil traded over $85 a barrel in late trade as investors bet on tightening market supply ahead of the voluntary cuts by Saudi Arabia, Russia, and Algeria on Aug. 1.
Producers of the 23-member OPEC+ group had pledged to reduce their output “to ensure market stability” amid weak demand signs in China, with a possible extension beyond August.
However, the Chinese National Bureau of Statistics (NBS) reported restricted growth on Monday, further fueling demand fears.
Analysts say the Saudi cutback of 1 million barrels per day may be extended for at least another month if the world’s largest oil importer and second-largest oil consumer, China, continues to post weak economic data.
