Oil stabilized overnight following a spike on Monday, which was caused by the announcement of further Saudi and Russian supply cuts. At the same time, views vary on the economic data, which could potentially hit oil demand, writes news agency Reuters.

A barrel of the Brent crude futures goes for USD 75.12 on Tuesday morning, down from USD 75.74 on Monday afternoon. Simultaneously, US benchmark West Texas Intermediate trades at USD 70.24, down from USD 71.00.

”Fundamentals are not having as much influence on price direction as one would expect. Instead, the uncertain macro outlook is what the market is focused on,” ING analysts said in a client note to Reuters, adding: 

”It is difficult seeing this pattern changing significantly in the short term, though the additional cuts do put a stronger floor in place for Brent at around USD 70 per barrel.”

Saudi Arabia announced on Monday that it will increase its voluntary cut of a 1 million barrels per day (bpd) from August. Russia will also reduce oil exports by 500,000 bpd from August, Russia’s Deputy Prime Minister Alexander Novak said.

The cuts account for about 1.5% of global supply and bring the total supply from the Organization of the Petroleum Exporting Countries and allies, OPEC+, down to 5.16 million bpd.

US crude inventories were expected to fall by around 1.8 million barrels last week. Industry data on oil inventories will not be released until Wednesday, while the official figures will be released on Thursday.

Industry data on inventories delayed by a day due to the US holiday.