Crude oil futures moved modestly higher on Tuesday on expectations of a supply cut from Saudi Arabia and Russia. The world's two biggest producers agreed to act if prices fall much further from current sub-$50 levels. However, Saudi Energy Minister Khalid al-Falih said there was no need to freeze output for now. Also, the dollar was lower, underpinning demand for oil. There was some concern on weak Services data as well, after the Institute for Supply Management said its nonmanufacturing index fell to 51.4 last month from 55.5 in July- the slowest pace of growth since 2010.
Benchmark crude oil futures for October delivery dropped $0.39 or 0.90 percent to close at $44.83 a barrel on the New York Mercantile Exchange. In London, Brent oil futures for November delivery declined by $0.22 or 0.46 percent to $47.41a barrel on the ICE.