Oil prices dipped but mostly held steady during early Asian trade as investors remained cautious ahead of anticipated OPEC+ production cutbacks to be announced this week.
International benchmark crude traded at $88.65 per barrel at 09.46 a.m. local time (0646 GMT), a 0.39% loss from the closing price of $89.00 a barrel in the previous trading session on Monday.
The American benchmark West Texas Intermediate (WTI) traded at the same time at $85.70 per barrel, down 0.32% from the previous session's close of $85.98 per barrel.
Both benchmarks held earlier gains and remained steady, with investors weighing market tightness in the aftermath of prospective supply cuts from Russia and Saudi Arabia.
This move came after Brent reached its highest level since November last year on Monday, at $89.22 per barrel, following Russian Deputy Prime Minister Alexander Novak's announcement last week that OPEC+ members had agreed on new production cuts.
Novak’s remarks came as no surprise to markets, as Saudi Arabia stated after extending its ongoing output cut through September that the pledged production reduction 'can be extended or extended and deepened' after September.
The rising value of the US dollar is also putting downward pressure on prices, providing a safe haven for investors amid developing supply fears but deterring purchases of dollar-indexed crude oil.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr