Oil prices fall slightly on Tuesday morning after Monday’s increases that came on the back of production cuts from Saudi Arabia and Russia and a weakening dollar. The drop is due to expectations of further interest rate hikes by the US Federal Reserve, according to Reuters.

A barrel of the European reference oil, Brent, costs USD 78.12 on Tuesday morning, compared to USD 78.52 on Monday afternoon. At the same time, US West Texas Intermediate (WTI) oil is trading at USD 73.44 compared to USD 73.88 on Monday afternoon.

Saudi Arabia announced last week that the production cut of 1 million barrels per day will continue at least until August, and Russia stated that next month it will cut 500,000 barrels per day.

Production cuts have lifted benchmark prices, supported by a weaker dollar, making prices lower in other currencies, which is expected to boost demand.

Investors await the US Consumer Price Index on Wednesday and economic reports from China to gauge the demand outlook.

”However, any weak economic forecast from US banks starting their earnings season could weigh on prices,” senior analyst Edward Moya of Onada tells Reuters.

The market is also awaiting an official oil inventory report on Wednesday afternoon. Analysts expect an increase of 200,000 barrels.

In the rest of the commodity market, a troy ounce of gold costs USD 1,927.27 on Tuesday morning, compared to USD 1,922.11 on Monday afternoon.