Oil prices fell on Tuesday, influenced by prevailing uncertainties regarding supply and demand in energy markets.
West Texas Intermediate (WTI) decreased by 0.5 percent, losing 35 cents and settling at $72.32. Brent crude future lost 50 cents, falling by 0.7 percent to mark $76.57.
Investors are currently on alert for clues from Chinese manufacturing and service sector data about the recovery of Chinese demand. The next OPEC+ meeting is highly anticipated as well, given the possibility of further supply cuts amid prices fall.
The U.S. debt ceiling issue weighs down on markets further, since the country’s failure to meet its financial obligations would disrupt financial markets.
OPEC+ countries have announced surprise oil cuts in April, which resulted in a temporary surge in oil prices. Although the cuts went into effect starting from this May, oil prices declined sharply due to concerns over weakened demand.