Brent crude futures rose 37 cents, or 0.4%, to $85.71 a barrel at 0010 GMT, while U.S. West Texas Intermediate crude was at $82.37 a barrel, up 43 cents or 0.5%.
Both the contracts had settled around 1% lower in the previous trading session as investors braced for weaker demand from the world's two biggest economies, China and the United States. "Crude oil's rally took a breather, facing key technical resistance... But Saudi and Russia's production cut could remain a bullish factor to oil markets," said CMC Markets analyst Tina Teng in a note.a voluntary oil output cut of one million barrels per day for another month to include September, adding that it could extend the cut beyond that date or make a deeper cut to production after September.
"Saudi Arabia's decision to extend production cuts into September despite Brent futures rising above $80 per barrel suggests that the kingdom may be targeting a higher price than $80 per barrel."to the group's current oil output policy after a Saudi decision to extend its voluntary production cut into September spurred a rally.on a broad deal to limit supply into 2024 at its last policy meeting in June. It maintained oil output cuts of 3.