Tuesday saw little movement in oil prices, which were already trading close to a three-month high set on Monday. This was due to signals of tightening global supply as producers reduce output and robust demand in the United States, the world's largest consumer of fuel.

Brent crude dipped 18 cents at $85.25 per barrel, meanwhile US WTI slumped 16 cents at $71.64 per barrel.

After manufacturing activity declined for a fourth month in July, Chinese officials announced further policy guidelines on Monday to improve the country's economy and domestic consumption, but they did not include any tangible actions.

A private sector survey released on Tuesday also revealed that, in July, China's industrial activity turned negative, with supply, demand, and export orders all declining amid weak market conditions.

Saudi Arabia committed to a further voluntary cut of 1 million barrels per day for July as part of the OPEC+'s wider agreement to control oil supplies through 2024. On July 3, Saudi Arabia declared that the reduction will extend through August.