Oil prices traded higher on Tuesday after scoring big gains on Monday in the wake of the surprise cuts to the OPEC+ group's oil output targets to shore up the market. Benchmark Brent crude futures were up 0.6 percent at $85.41, after having climbed $5 a barrel in the previous session after the production cut announcement.
WTI crude futures were up 0.7 percent at $80.97 after rallying 6.3 percent the previous day.
Saudi Arabia and other OPEC+ oil producers agreed on Sunday to cut oil output by around 1.16 million barrels per day, claiming the move was a precautionary measure aimed at supporting the stability of the oil market.
Goldman Sachs lifted its forecast for Brent to $95 a barrel by the end of this year, and to $100 for 2024.
As supply tightens, investor focus now shifted to the future demand outlook and the impact of higher prices on global growth.
Traders also fretted about a potential recession caused by an overly tight Federal Reserve to cool inflation.
Trading activity later in the day may be impacted by the inventory report published by the American Petroleum Institute (API).
The Energy Information Administration (EIA) releases its weekly data on crude oil, gasoline and distillate stockpiles on Wednesday.
