Oil steadies before OPEC monthly report and US inflation data

Oil steadied after a three-day drop ahead of a series of market reports and US inflation data that may provide direction for prices.

West Texas Intermediate futures traded above $78 a barrel after falling 1.5% over the previous three sessions. Brent closed near $82 on Monday. Traders will have a raft of information to digest on Tuesday, from OPEC’s monthly report to industry figures on US stockpiles and an inflation print for February.

Oil is up for the year but prices have been stuck in a tight trading range, caught between the push and pull of bullish and bearish factors. OPEC+ supply curbs have been offset by higher production from outside the group, while concerns around Chinese demand persist.

The market will also be watching developments between Israel and Hamas, with cease-fire talks at an impasse as Ramadan begins and the US warning against an escalation. Israel had previously said it would launch an offensive in the city of Rafah unless its hostages are returned by the Muslim holy month.

Later this week, the International Energy Agency will also release its monthly report, providing another snapshot on the market outlook.