Oil steady as markets look ahead to China GDP data
Oil prices are holding steady after falling 2% in the previous session. Markets are awaiting the release of economic data in China.
The oil prices were stable in early trading Tuesday, after dropping 2% the previous day. Markets are awaiting economic data from China to see if there is any sign of growth and economic recovery in China that can offset the weakening demand in other parts of the world.
Brent crude was unchanged at $84.76 per barrel at 0004 GMT while U.S. West Texas Intermediate rose 5 cents to $80.88 per barrel.
Prices fell on Monday, as the dollar strengthened amid expectations that the U.S. Federal Reserve could raise interest rates in May. This would dampen hopes for an economic recovery.
China will release its gross domestic product (GDP) data at 2100 GMT. Retail sales and industrial production are also expected later that day.
According to the International Energy Agency, China is expected to account for most of the demand growth in 2023.
It has nevertheless warned that the output cuts announced in the first half of this year by OPEC+ producers could worsen the oil supply deficit, which is expected to occur during the second half. This could harm consumers and the global economic recovery.
A coalition official confirmed that the Group of Seven coalition would maintain a $60 price cap per barrel on seaborne Russian crude oil despite rising global prices for crude and demands from some countries to lower this price cap in order to limit Moscow's revenue.
The Energy Information Administration reported on Monday that the U.S. production of crude oil and gas in seven major shale basins will likely reach its highest level ever in May.
Data on U.S. crude oil stockpiles were due Tuesday. A preliminary Reuters survey showed that U.S. crude inventories probably fell by around 2.5 million barrels in the past week.