Oil ticks up on OPEC+ cuts, traders eye economic data

The oil prices rose on Tuesday as traders waited for data to help determine demand and focused on the supply cuts made by Saudi Arabia and Russia, the two largest oil exporters in the world.

Brent crude futures were up 33 cents or 0.4% to $78 per barrel at 0050 GMT. U.S. West Texas intermediate crude was also up 35 cents or 0.5% to $73.34.

Prices fell 1% Monday as investors took profits after the 4.5% increase last week and increased expectations of further interest rate increases in the United States.

Markets took comfort in the fact that central bank officials believe the current cycle of tightening monetary policy is nearing its end.

Saudi Arabia and Russia, the two largest oil exporters in the world, have announced supply cuts for August. The benchmark prices were also helped by a drop in the U.S. Dollar to its lowest level in over two months. The dollar's weakness makes crude oil cheaper for holders of currencies other than the US dollar, which often increases demand.

Saudi Arabia announced last week that it would continue its cut of 1 million barrels per day, or bpd., at least until August. Russia also said that it would reduce its oil exports by 500,000 bpd next month.

The American Petroleum Institute, a trade group representing the oil industry, will release its crude inventory report for the United States later Tuesday. Analysts predict a build-up of 200,000 barrels.

Investors also awaited this week's release of U.S. Consumer Price Index, an important inflation report, as well as economic reports from China, to gauge the outlook on demand.