Oil falls as optimism over output cut fades rapidly

Oil fell slightly as investors weighed the outlook for supply and demand following Saudi Arabia’s surprise pledge for additional supply cuts. U.S. crude fell below $72 a barrel on Tuesday as caution permeated markets. Futures rose early Monday after Saudi Arabia made a statement following a tense OPEC+ meeting, giving up most of the gains during the session. The kingdom also raised its July crude prices in Asia. Saudi Arabia vowed to do “whatever it takes” to stabilize the market as concerns about the outlook for demand, particularly from China, weighed on prices. Oil fell 11 percent last month, in part because of resilient Russian production, despite the OPEC+ producer saying earlier this year it would reduce supply. The kingdom followed up its move to cut output by 1 million barrels a day in July by raising crude prices for the same month. It had been expected to lower the cost of oil, according to a survey of buyers in Asia ahead of the OPEC+ meeting. RHB Investment Bank Bhd oil analyst Sean Lim said the OPEC+ meeting reiterated its commitment to ensuring stability but the outcome of the meeting would have minimal impact on the oil market.