Benchmark Brent crude futures were down 16 cents, or 0.2%, to $84.09 per barrel after jumping in the earlier session
Oil prices were largely steady on Tuesday, as traders awaited signs of an expected summer demand boost to prop up prices even as strong supply threatens to offset gains.
Benchmark Brent crude futures were down 16 cents, or 0.2%, to $84.09 per barrel at 0805 GMT after jumping in the earlier session. U.S. West Texas Intermediate (WTI) crude futures, which also advanced on Monday, were down 15 cents, or 0.2%, to $80.18 a barrel.
Both benchmarks rose nearly 2% on Monday, closing at their highest levels since April.
The oil market shifted its focus back to fundamentals, which have been soft for some time, BoFA commodity and derivatives strategist Francisco Blanch said in a note, adding that global crude oil inventories and refined product storage in the US and Singapore, among other places, was higher.
Meanwhile, global oil demand growth declined to 890,000 bpd year on year in Q1, and data indicates consumption growth likely slowed further in Q2, he said in the note.
The critical data set this week, at least for us, will be the U.S. oil inventory data as it could confirm or refute the developing optimism that demand has started its ascent at the beginning of the summer driving season, Tamas Varga of oil broker PVM stated in a note.
Some analysts remained bullish on the price impact of an extension by the OPEC+ group of supply cuts in the near term.
The latest guidance provided by OPEC+, as well as their unchanged 2.25 million bpd demand growth outlook, signals a stagnation in oil supply growth for 2024 and an apparent downside risk to production in 2025, said Patricio Valdivieso, Rystad Energy VP and global lead of crude trading analysis.
He added: Under these conditions — and the disconnect between the OPEC+ demand outlook and all other agencies — it is hard to remain fully bearish when global oil supply growth seems decimated.
In China, oil refinery output in May slid 1.8% from year-ago levels, statistics bureau data showed on Monday, as refiners undertook planned maintenance and processing margins were pressured by growing crude costs.
