Oil prices steadied on Tuesday after falling over the past two sessions as investors remained cautious amid expectations of abundant supplies and weak demand, while the market shrugged off turmoil in the U.S. presidential election campaign.
Brent crude futures for September delivery rose 2 cents to $82.42 a barrel by 0320 GMT. U.S. West Texas Intermediate crude for September delivery also fell 2 cents to $78.38 a barrel.
Most traders shrugged off US President Joe Biden’s decision on Sunday to withdraw from the US presidential race and nominate his running mate Kamala Harris. Citi analysts said neither Republican candidate Donald Trump nor Harris would promote policies that would significantly impact oil and gas operations.
The market focused on supply and demand, which Morgan Stanley analysts said was likely to balance by the fourth quarter and rise to a surplus by next year, which would push Brent prices down to $70 to $80 a barrel.
The American Petroleum Institute is due to release its estimates of last week's oil inventories later on Tuesday, while official U.S. government data is due out on Wednesday.
A preliminary Reuters poll of six analysts estimated U.S. crude inventories fell by an average of 2.5 million barrels in the week to July 19, while gasoline stocks were likely to fall by 500,000 barrels.
