Oil prices remained steady on Tuesday as traders awaited signs of increased summer demand that could support prices, despite concerns about ample supply potentially limiting gains.

Benchmark Brent crude futures were unchanged at $84.23 per barrel at 1231 GMT, following an increase in the previous session. Meanwhile, U.S. West Texas Intermediate crude futures, which also saw gains on Monday, rose by 3 cents to $80.36 a barrel.

Both benchmarks recorded approximately 2 per cent gains on Monday, closing at their highest levels since April. Brent crude has rebounded from its early-June close of $77.52 per barrel, although it remains below its peak of $90 in mid-April.

“Crude Oil continues to trade positive with WTI oil rising above $80 per barrel, in expectation of higher demand in the second-half of the year as some central banks have started cutting rates, which boost economic activity. Prices were also supported by OPEC members waring that the decision to roll back output cuts could be reversed if demand doesn’t materialize,” said Pranav Mer, VP – Research (Commodity & Currency) BlinkX and JM Financial.

What’s weighing on crude oil prices?

• Global oil demand growth decelerated to 890,000 barrels per day year-on-year in the first quarter, with indications pointing to a further slowdown in consumption growth during the second quarter.
• Meanwhile, analysts surveyed by Reuters anticipate a 2.3 million barrel decline in U.S. crude inventories for the week ending June 14. Despite this, some analysts maintain an optimistic outlook on the price effects following the OPEC group’s extension of supply cuts in the near future.
• Some analysts maintained a positive outlook on the price implications of the OPEC group extending supply cuts in the short term.

• According to data from China’s statistics bureau on Monday, oil refinery output in May decreased by 1.8% compared to the previous year, attributed to planned maintenance by refiners and pressured processing margins due to higher crude oil expenses.
• Investors were also attentive to forthcoming statements on interest rates and anticipated developments in U.S. demand, with several U.S. Federal Reserve representatives scheduled to speak later on Tuesday.