Oil stabilizes as the market is affected by production cuts

Oil prices stabilized on Tuesday, as markets were hit by supply constraints due to planned cuts in August by top oil exporters Saudi Arabia and Russia, in the face of economic data that indicated weak demand for crude.

Brent crude futures rose 22 cents, or 0.3 percent, to $74.87 a barrel by 0033 GMT.

US West Texas Intermediate crude recorded $70.06 a barrel, up 27 cents, or 0.3 percent.

US markets are closed on Tuesday due to a holiday in the country. Both benchmarks fell 1 percent when settled in the previous session.

Saudi Arabia said on Monday it would extend its voluntary production cut of 1 million barrels per day to August, the Saudi Press Agency reported.

Russian Deputy Prime Minister Alexander Novak said Russia would also cut its oil exports by 500,000 barrels per day in August.

The cuts amount to 1.5 percent of global supplies and raise the total production cut pledges from OPEC+ producers to 5.16 million barrels per day, as Riyadh and Moscow seek to support prices.

OPEC+ includes members and allies of the Organization of the Petroleum Exporting Countries.

But markets are concerned about demand for oil after surveys of companies showed a decline in global factory activity due to slowing demand in China and Europe.