Oil prices traded lower in the morning session of Asian trading hours on Tuesday after jumping more than 4% on potential production cuts from OPEC+.
Last week, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Saudi Arabia, raised the possibility for a production cut to stabilize the market it described as schizophrenic.
The market is eyeing OPEC+ meeting to set its policy on September 5.
Hopes that oil supply could get tighter from the production cut spurred oil prices on Monday to move to their highest level in more than a month.
On Monday, the international benchmark Brent crude jumped $4.10 or 4.1% to settle at $105.09 a barrel, while the U.S. West Texas Intermediate (WTI) rose $3.95 or 4.2% to close at $ 97.01 per barrel.
However, oil prices slowed down on Tuesday as investors shifted their focus toward inflation concerns, which is running high in many of the world’s biggest economies. As U.S. and United Kingdom’s central banks are pushing for more rate hikes to combat rising consumer prices, other countries are weighing on their central banks that could follow the world’s biggest economies’ footsteps.
Brent crude slipped $0.88 or 0.84% to $104.21 a barrel and WTI dropped $0.42 or 0.43% to $96.59 per barrel.