Oil prices crept lower in Asian trade on Tuesday as initial optimism over more supply cuts by Saudi Arabia and OPEC was largely offset by persistent concerns over slowing economic growth and weakening demand.

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The markets bet that any slowdown in demand will largely outweigh tighter supplies this year.

Brent crude futures fell 0.27 per cent to $76.50/barrel, while US WTI crude fell 0.37 per cent to $71.81 per barrel.

Both contracts rose as much as 3 per cent on Monday before settling between 0.6 per cent and 0.8 per cent.

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