Oil prices are falling under the weight of fears of a global economic slowdown

Oil prices fell on Wednesday, erasing gains from the previous session, as fears of a global economic slowdown curbing fuel demand outweighed expectations of further supply cuts due to production cuts announced by Saudi Arabia and Russia for August.

Brent crude fell 14 cents, or 0.2 percent, to $76.11 a barrel by 0027 GMT, after rising $1.60 on Tuesday.

US West Texas Intermediate crude futures reached $71.14 a barrel, up $1.35, or 1.9 percent, from Monday’s close, as Tuesday was a holiday in the United States.

Saudi Arabia, the world’s largest crude exporter, said on Monday it would extend its voluntary production cut of 1 million barrels per day until August, while Russia and Algeria volunteered to reduce their production and export levels in August by 500,000 bpd and 20,000 bpd, respectively.

However, investors are still concerned about demand for oil after business surveys showed a slowdown in global factory activity due to slowing demand in China and Europe.