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0916 GMT, Brent crude futures were down 41 cents, or 0.6%, at
$73.77 a barrel, while U.S. West Texas Intermediate (WTI)
futures fell 42 cents, or 0.6%, to $68.95 a barrel, erasing some
earlier gains.
Both contracts are trading broadly in the middle of a $10 a
barrel range traced since early May.
U.S. inventory data from the American Petroleum Institute
industry group is due later on Tuesday, followed by government
data the next day. A Reuters poll indicated U.S. inventories
probably fell in the week to June 23. [API/S] [EIA/S]
Brent's six-month backwardation - a price structure whereby
sooner-loading contracts trade above later-loading ones - is
hovering near lows last seen in March, indicating shrinking
concern about supply crunches.
For the two-month spread, the market is in shallow contango, the
opposite price structure, indicating traders are factoring in a
currently slightly oversupplied market.
The oil market has shrugged off a clash between Moscow and
Russian mercenary group Wagner which was averted on Saturday.
Russian oil loadings have kept on schedule.
"The latest geopolitical flare-up quickly pales into
insignificance compared to persistent macroeconomic
considerations," said PVM's Tamas Varga.
This is the case despite Saudi Arabia's pledge to slash output
from July.
Much depends on whether Chinese oil demand picks up in the
second half. Premier Li Qiang said China will take steps to
boost demand and invigorate markets, without giving details.
Global gasoline demand grew by 365,000 bpd year-on-year, driven
by strong U.S. gasoline data, with consumption at an eight-week
high of 9.4 million bpd in the week of June 17, JP Morgan
analysts said in a note.
(Additional reporting by Trixie Yap; Editing by Jan Harvey)
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