Oil prices remained steady in early Tuesday trading as markets awaited OPEC’s monthly report for further direction, following recent declines driven by concerns over oversupply and limited stimulus from China. Brent crude futures dipped by 1 cent to $71.82 a barrel, while U.S. West Texas Intermediate crude futures edged up 3 cents to $68.07 a barrel by 0158 GMT. Both benchmarks had dropped over 5% in the previous two sessions.
 
China’s recently announced 10 trillion yuan ($1.40 trillion) debt package to alleviate local government financing issues was viewed as insufficient by analysts to significantly boost economic growth, leaving oil markets underwhelmed. OPEC's report, expected later Tuesday, could add to bearish sentiment if it further revises down demand projections through 2025.
 
Market dynamics show signs of ample supply, with Brent and WTI prompt time spreads approaching contango—a situation where near-term prices are lower than future contracts, signaling reduced immediate demand or increased supply.
 
Adding to the pressure, a stronger U.S. dollar, buoyed by anticipation of U.S. inflation data and Federal Reserve commentary, has made oil more expensive for non-dollar holders, further weighing on prices.