Brent crude was up 7 cents, or 0.2%, at $43.48 a barrel at 1052
GMT, while West Texas Intermediate (WTI) U.S. crude fell 19
cents, or 0.5%, to $41.41 a barrel.
"Oil continues to trade in a range with its supply fundamentals
helping to set a floor while the economic and demand outlook is
providing the cap," said Harry Tchilinguirian, head of commodity
research at BNP Paribas.
A big U.S. fiscal package that could boost oil prices was
deadlocked in talks between Democrats who made a $3 trillion
proposal and Republicans who have a $1 trillion plan.
Traders are also before the U.S. Federal Reserve's
policy-setting panel meeting on Tuesday and Wednesday. The panel
is expected to reiterate that interest rates will remain near
zero for years to come.
Brent crude was deeper in contango, a market structure in which
the future price of the commodity is higher than the spot price,
encouraging a build up of inventories.
September prices were as much as 49 cents per barrel below
October, compared to 1 cent in early July.
"This suggests that the tightening we were seeing in the market
has eased somewhat, with the demand outlook more uncertain given
the resurgence of COVID-19 cases in some regions," said Warren
Patterson, ING's head of commodities strategy.
U.S. inventory data may show refined product stockpiles declined
last week, while crude oil stockpiles are expected to have held
steady, five analysts polled by Reuters estimated.
On the down side for fuel demand, Europe's largest low-cost
airline Ryanair cut its annual passenger target on Monday by a
quarter and warned that a resurgence in coronavirus infections
could lower that further.
(Reporting by Bozorgmehr Sharafedin in London; additional
reporting by Roslan Khasawneh in Singapore and Sonali Paul in
Melbourne; Editing by Jason Neely and Edmund Blair)
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