Oil prices steadied after a weekly decline as the market continued to digest the OPEC+ decision, while traders looked ahead to a slew of industry reports and the Federal Reserve's interest rate decision.
Brent crude was trading near $80 a barrel after losing 2.5% last week, as automated, algorithmic trading amplified the declines after the alliance said it would start bringing more supplies back to the market from the third quarter. West Texas Intermediate crude was near $76.
Traders are awaiting monthly reports from OPEC and the International Energy Agency, due on Tuesday and Wednesday, which will shed light on the health of the sector. The Federal Reserve also issues its interest rate decision midweek. Strong economic data and high inflation have reduced market bets that the U.S. central bank is close to cutting rates.
Crude oil has fallen since early April on a weak demand outlook, with money managers cutting their net long positions in Brent by the most on record in data going back to 2011, making the positions the least bullish in a decade. Net long positions in WTI also fell.
However, there are still strengths in some refined product markets, including jet fuel, as air travel recovers to pre-Covid levels spurring a recovery.
Geopolitical tensions remained a focus for the market. Tensions in the Middle East escalated after Israel freed four hostages in a raid in Gaza, part of an assault that killed more than 200 Palestinians, according to the Hamas-run government media office. In Europe, far-right parties made gains in European Parliament elections.
Trading volumes are likely to be thin during Asian business hours with a holiday in mainland China and Hong Kong.
