Oil prices fell on Tuesday, giving up most of the gains made in the previous session, after Saudi Arabia, the largest oil exporter in the world, announced its intention to further reduce production.
Brent crude futures fell 27 cents, or 0.35 percent, to $76.44 a barrel in morning trading. US West Texas Intermediate crude lost 33 cents, or 0.33 percent, to $71.82 a barrel.
Brent rose by $2.6 on Monday, while US crude increased by $3.3, a few hours after Saudi Arabia said it intended to cut production by one million barrels per day to nine million barrels per day in July.
This voluntary cut, the largest cut decided by Saudi Arabia in years, comes in addition to a broader agreement by the OPEC + alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, to limit supply in an effort to support crude prices.
The OPEC+ alliance pumps about 40 percent of global crude oil production.
But many of these cuts announced after the OPEC meeting in Vienna on Sunday may not have a real impact, as the group cut production targets for Russia, Nigeria and Angola to match current actual production levels.
