Oil surges 1% as supply cuts but slowing economy slows demand expectations
Oil prices rose more than 1 percent on Tuesday amid supply cuts led by OPEC and Russia, but a worsening economic outlook could soon bring fuel demand growth.
Brent crude <CLc1> was $ 59.80 a barrel at 0628 GMT, up 81 cents, or 1.4 percent, from the last close.
West Texas Intermediate crude was $ 51.21 a barrel, up 70 cents, or 1.4 percent.
"Opec-led cuts and a decline in the number of American excavators has boosted market sentiment in the new year," brokerage firm Philip Futures said.
OPEC and a number of independent producers, including Russia, agreed late last year to cut output to curb global supply glut.
In the United States, the number of rigs looking for new oil production from the 2018 peak of 888 dredged to 873 earlier this year, which could result in an increase in production of more than 2 million barrels per day last year, bringing US crude production to a record 11.7 million barrels per day .