Magnifying their previous sessions losses, crude oil futures ended lower on Tuesday, amid concerns about possible oversupply in the market following the decision of the OPEC+ to gradually phase out voluntary production cuts from October. The OPEC's decision to phase out production cuts will see more than 500,000 bpd of crude returning to the market by December. 1.8 million bpd would come back by June of 2025. U.S. manufacturing activity slowed for a second straight month in May and construction spending fell unexpectedly for a second consecutive month in April - adding to signs the world's largest economy is gradually slowing down. Traders now await weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA).
Benchmark crude oil futures for July delivery fell $0.97 or about 1.3% to settle at $73.25 a barrel on the New York Mercantile Exchange. Brent crude for July delivery was down $0.84 or about 1.07% to $77.52 per barrel on London's Intercontinental Exchange.