Oil prices were little changed early Tuesday, awaiting further guidance from OPEC's monthly report, after China's stimulus package and concerns about a supply glut got the better of the markets in previous sessions.
Brent oil futures fell 1 cent to $71.82 a barrel, as of 0158 GMT. U.S. West Texas Intermediate crude futures were at $68.07 a barrel, up 3 cents.
Both contracts have fallen more than 5% over the past two trading sessions. China unveiled a 10 trillion yuan ($1.4 trillion) debt package on Friday to ease financial strain on local governments, but analysts said it fell short of stimulus measures which would be necessary to stimulate growth.
The monthly report from the Organization of the Petroleum Exporting Countries (OPEC), due to be released later on Tuesday, will provide a new direction for prices. The market will be watching for further downward revisions to demand in the group's outlook through 2025, which would add to downward pressure on prices.
“Time spreads for Brent and WTI have collapsed recently, moving closer to contango, suggesting a better-supplied physical market,” ING analysts said in a note.
When a futures market is in contango, fast delivery contracts are lower than future delivery contracts, suggesting that the market is well supplied in the short term or that there is greater demand for oil in the future .
The U.S. dollar closed higher on Monday as markets braced for further signals from U.S. inflation data and Federal Reserve speakers this week.
Commodities denominated in the American currency, such as oil, are therefore more expensive for holders of other currencies, which tends to weigh on prices.
