(Bloomberg) — Oil declined as traders weighed the outlook for supply and demand after Saudi Arabia’s surprise pledge for extra supply cuts.
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West Texas Intermediate dipped below $72 a barrel on Tuesday as a cautious tone spread across markets. Futures surged early Monday following the Saudi announcement after a tense OPEC+ meeting, before giving up most of the gains during the session. The kingdom also raised its crude prices to Asia for July.
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Saudi Arabia pledged to do “whatever is necessary” to stabilize the market as concerns over the demand outlook, especially from China, weighed on prices. Oil tumbled 11% last month, in part due to resilient Russian output, despite the OPEC+ producer saying earlier this year it would reduce supply.
The kingdom followed its move to cut output by…
