Oil prices rose on Tuesday, recouping some of the previous session's losses, with traders focusing on Saudi Arabia and Russia cutting production and anticipating economic data that may help ascertain the status of demand for crude.
Brent crude futures rose 33 cents, or 0.4 percent, to $78 a barrel by 0050 GMT, and US West Texas Intermediate crude rose 35 cents, or 0.5 percent, to $73.34.
Prices fell 1 percent on Monday amid expectations of an increase in the possibility of a US interest rate hike, and as investors reaped profits.
While US central bank officials said the bank would likely need to raise interest rates further to bring down inflation, markets were relieved by indications that officials also believe the current tightening cycle is coming to an end.
Supply cuts from the world's two largest oil exporters, Saudi Arabia and Russia, scheduled for August helped lift record prices, which were also supported by the dollar's drop to a two-month low. A weaker dollar makes crude oil cheaper for holders of other currencies and often increases demand for oil.
Saudi Arabia said last week it would extend its cut of at least one million barrels per day until August, and Russia said it would cut its oil exports next month by 500,000 barrels per day.
Traders are also looking forward to US crude inventory data due to be released by the American Petroleum Institute later on Tuesday. Analysts expect an increase in stocks by 200 thousand barrels.
Investors are also awaiting the release of US consumer price index data, a key report on inflation, this week, as well as economic reports from China to gauge demand expectations.
