Oil erases all gains that followed Saudi-led production cut

​Oil erased all the gains that followed Saudi Arabia's surprise weekend pledge for extra supply cuts.

West Texas Intermediate dipped below US$71 a barrel on Tuesday, down by about US$1 from Friday's close. The drop comes after Monday's short-lived surge following the tense OPEC+ meeting and Saudi announcement. The kingdom also raised its crude prices for July.

Saudi Arabia pledged to do “whatever is necessary” to stabilize the market with concerns over the demand outlook, especially from China, weighing on prices in recent weeks. Oil tumbled 11 per cent last month, in part due to resilient Russian output, despite the OPEC+ producer saying earlier this year it would reduce supply.