Investing.com - Crude oil climbed higher on Tuesday, clawing back losses from a day earlier following a bullish report pointing to deeper OPEC production cuts.
On the New York Mercantile Exchange WTI futures rose 1.57% to $54.40 a barrel, while on London's Intercontinental Exchange, Brent added 0.79% to $58.58 a barrel.
The Joint Ministerial Monitoring Committee of OPEC and non-cartel oil producers (OPEC+) reported that OPEC+ production limits, in place since the end of last year, have reached 159% compliance in July 2019, up 22 percentage points from a month earlier.
The committee also said it expected "significant" crude inventory declines in the second half of the year.
The deeper cuts come as many traders grow concerned that a slowing global economy, mainly driven by the U.S.-China trade war, will dent oil demand growth, pressuring prices.
The outlook on trade remains uncertain as Beijing hit back at claims by President Donald Trump, who recently said that China wants to make a deal “very badly.”
“China's economy is increasingly driven internally, it's more and more difficult for the U.S. to press China to make concessions,” said Hu Xijin, the editor of China Global Times and an unofficial voice of China's government.
Oil prices were also propped up by expectations for a second-straight weekly draw in U.S. oil inventories, with the Energy Information Administration (EIA) set to release its latest petroleum data on Wednesday.
The EIA is expected to report that crude stockpiles fell by 2.1 million barrels for the week ended Aug. 23.
“Oil could see some support from tomorrow's crude energy report," said Edward Moya, a market analyst at Oanda.
"After hitting consistent record-high production levels earlier in the year, the pace of U.S. output has steadily slowed down and oil could start to see more support as energy markets continue to tighten,” he added.