Oil Prices Ease As Economic Fears Overshadow Saudi Output Cut  

• Oil prices eased on Tuesday as worries of sluggish global economic growth reducing energy demand outweighed Saudi Arabia's pledge to deepen output cuts. Both crude benchmarks climbed higher for a third day in a row on Monday after Saudi Arabia, the world's top exporter, said over the weekend that its output would drop by 1 million barrels per day (bpd) to 9 million bpd in July.
• Additionally, weaker demand, stronger non-OPEC supply, slower economic growth in China and potential recessions in the U.S. and Europe mean the Saudi cut is unlikely to achieve a "sustainable price increase" into the high $80s and low $90s, Citi analysts said in a note on Tuesday.
• The U.S. dollar, meanwhile, rose to its highest level against a basket of currencies since hitting a 10-week high on May 31 as investors waited on fresh signals on whether the U.S. Federal Reserve will raise or hold interest rates in June. A stronger dollar can weigh on oil demand by making the fuel more expensive for holders of other currencies.

(Source: CNBC)