Oil prices drop, bypassing the OPEC meeting

Oil prices drop, bypassing the OPEC meeting

Oil prices fell on Tuesday, giving up most of the gains made in the previous session, after Saudi Arabia, the largest oil exporter in the world, announced its intention to cut production further.

Brent crude futures fell 23 cents, or 0.3 percent, to $76.48 a barrel by 0020 GMT. US West Texas Intermediate crude lost 25 cents, or 0.4 percent, to $71.90 a barrel.

Brent rose $2.6 on Monday, while U.S. crude rose $3.3 a few hours after Saudi Arabia said it planned to cut output by 1 million bpd to 9 million bpd in July.

This voluntary cut, the biggest cut by Saudi Arabia in years, comes in addition to a broader agreement by the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, to limit supply in an effort to support crude prices.

The OPEC+ alliance pumps about 40 percent of global crude oil production.

But many of these cuts, announced after the OPEC meeting in Vienna on Sunday, may not have a real impact, as the group lowered production targets for Russia, Nigeria and Angola to match current actual production levels.

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