Tuesday saw a decline in oil prices as new data increased concerns about the status of China's post-pandemic recovery, but losses were restrained by hopes that supply cutbacks by top OPEC+ members would continue.

Brent crude slipped 51 cents at $88.49 per barrel, meanwhile US WTI futures edged plunged to $85.41 per barrel.

The second-largest economy in the world, China, is seen as essential to bolstering oil demand for the remainder of the year. Markets have been upset by its lacklustre economic growth as expected stimulus hasn't materialized.

According to a private sector poll released on Tuesday, China, the world's largest oil importer, saw its services sector develop at its slowest rate in eight months in August.

On the other hand, data from Europe also showed gloom. According to a study, the major services sector in the euro zone shrank more than anticipated last month, raising the possibility of a recession in the region.

According to Russia's deputy prime minister, a new OPEC+ production cut agreement will be announced this week, and Saudi Arabia is widely anticipated to prolong its voluntary oil cutbacks through October.

Also being watched for hints on whether the Federal Reserve will cease its ferocious interest rate hiking campaign are U.S. economic data that is expected later on Tuesday.