U.S. oil futures settle lower a day after rising in the wake of Saudi Arabia’s plan to cut output

Oil futures finished lower on Tuesday, with U.S. benchmark prices giving back what they gained a day earlier after Saudi Arabia on Sunday said it would take on an additional output cut of 1 million barrels a day in July. The market needs some assurance that the other OPEC+ members won’t be taking advantage of Saudi Arabia and will be complying fully with previously agreed production cuts, said Fawad Razaqzada, market analyst at StoneX. “Russia could be the main culprit, as Moscow needs to sell as much oil as it can to finance its ongoing war in Ukraine.” July West Texas Intermediate crude
CLN23,
-0.06%
fell 41 cents, or 0.6%, to settle at $71.74 a barrel on the New York Mercantile Exchange.