Oil prices edged up to a two-week high on Tuesday as positive U.S. economic news, lower U.S. oil production and rising demand for oil products countered OPEC+ output increases and worries U.S. tariffs could reduce energy demand.

Oil prices eased in early Tuesday trade after nearly two per cent gains the day before, as investors evaluated the implications of fresh US tariff plans alongside a larger-than-expected output increase by OPEC+ for August.

The price of oil was stable on Monday despite a larger-than-expected increase in production by the Organization of the Petroleum Exporting Countries and its allies. Seasonal demand and doubts about the actual increase in output explain the muted reaction.