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Oil futures gained on Tuesday, lifted by Saudi Arabia’s deeper production cuts to buoy prices amid the supply glut and weak demand.
Brent crude futures rose 0.8%, or 24 cents, at $29.87 per barrel. U.S. West Texas Intermediate crude futures climbed 1.6%, or 38 cents, at $24.52 per barrel.
Saudi Arabia announced an additional 1 million bpd output cut in June, bringing the total to 7.5 million bpd.
Kuwait and the United Arab Emirates are also planning to cut production by an additional 180,000 bpd.
Some investors have questioned the necessity of further cuts as the measures were sudden and drastic.
The output cuts, along with easing restrictions in developed economies and a slow recovery in demand, are forecasted to lessen the pressure on oil storage capacity.
Despite the measures implemented to support the global economy, markets remain wary of economic re-openings due to a possible second wave of infections, particularly in China and South Korea.
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