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Oil prices were steady in early trade on Tuesday after sliding 2% the previous session, with markets searching for evidence of economic rebound and growth in China to counter weaker demand elsewhere.

At 0004 GMT, Brent crude was unchanged at USD 84.76 per barrel, while West Texas Intermediate was up 5 cents at USD 80.88 per barrel.

Prices fell as the dollar rose on anticipation of a May interest rate hike by the United States Federal Reserve, which might undermine economic recovery aspirations.

China will issue GDP data at 0200 GMT, with retail sales and industrial production figures following later in the day.

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According to the International Energy Agency (IEA), China will account for the majority of demand growth in 2023.

It has, however, warned that the output curbs planned by OPEC+ countries risk increasing a forecast oil supply deficit in the second half of the year, which might harm consumers and the global economic recovery.

Despite rising global crude prices and appeals from some countries for a lower price ceiling to limit Moscow's income, the Group of Seven (G7) coalition will maintain a USD 60 per barrel price limitation on seaborne Russian oil, according to a coalition official.

Meanwhile, crude oil and natural gas output in the seven largest shale basins in the United States is likely to reach a record high in May, according to figures from the Energy Information Administration.

Data on US crude stockpiles was due from the industry. According to a preliminary Reuters poll, crude oil stocks in the United States decreased by approximately 2.5 million barrels last week.

Crude Oil Price Trend

North America

Crude oil prices have recently fallen as a result of debates about restricting the price of Russian crude oil and a negative market outlook.

Since the outbreak of the Russia-Ukraine war, Europe and America have attempted to penalise Russia by imposing sanctions and a ban on imports and exports. However, inventories in the United States fell, resulting in the Strategic Petroleum Reserve (SPR) hitting its lowest level of 387 million barrels since 1984.

However, the operations of multiple refineries were hampered by the ice storm Elliot, which swept over Canada and the United States shortly before Christmas.

APAC

Crude oil prices fluctuated, wiping off any gains achieved during the OPEC+ summit. China, the world's largest importer of crude oil, was expecting worsening petrol demand amid growing concerns about a global economic slowdown.

Meanwhile, following rumours that the US government could release oil from its strategic petroleum reserves to suppress rising Crude Oil offers on the worldwide market, both benchmarks fell consecutively during the second half.

Several market participants, however, considered that the change in market attitudes had impacted on the Crude Oil trend for a brief while, resulting in Crude Oil fluctuation.

Europe

Recently, global crude oil prices began to fall. The debate about setting a price cap on Russian crude oil altered the product's pricing dynamics in the global market and remained part of favourable market sentiments.

According to sources, US inventories remained at a five-year low, influencing the market outlook for Crude Oil. Furthermore, major oil producers and consumers had proposed a restriction on Russian crude oil.

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However, Russia had already cautioned these countries against doing so and advised them to brace themselves for the consequences.

As per Procurement Resource, after falling 2% the previous session, oil prices were flat in early trade on Tuesday, with investors looking for signs of an economic resurgence and growth in China to offset weaker demand elsewhere. Brent crude was stable at USD 84.76 per barrel at 0004 GMT, while West Texas Intermediate was 5 cents higher at USD 80.88 per barrel. Prices declined as the dollar surged in expectation of a May interest rate hike by the Federal Reserve of the United States, which might damage economic recovery hopes.