However, this momentum was short-lived as both benchmarks dropped on Tuesday morning. Traders seem skeptical about the significance of further cuts by OPEC+ given concerns about the global economy. Saudi Arabia recently announced voluntary cuts of 1 million barrels per day, but the UAE was permitted to increase production by roughly 200,000 barrels per day.

On the other hand, “the U.S. economy is about to show a very robust summer travel season that should mean gasoline and jet fuel demand is going to be very strong,” according to Edward Moya from OANDA, also cited by Reuters.

According to U.S. manufacturing sector data, the industry has been decreasing continuously for seven months, which aligns with the criteria for a recession. This has resulted in a decrease in the need for fuels and has strengthened a negative outlook among oil traders.

Nonetheless, the summer driving season is the period of maximum demand, and with gas prices significantly lower than they were at this time last year, it may very well satisfy its reputation and potentially alter the opinions of traders.