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Brent crude futures eased by 11 cents, or 0.2%, to $75.12 a
barrel by 0922 GMT while U.S. West Texas Intermediate crude was
down 12 cents, or 0.2%, at $70.99.
Both benchmarks rose more than 1% on Monday, reversing a
three-session losing streak.
The IEA raised its forecast for global oil demand this year by
200,000 barrels per day (bpd) to a record 102 million bpd. It
said China's recovery after the lifting of COVID-19 curbs had
surpassed expectations, with demand reaching a record 16 million
bpd in March.
In another bullish factor, the U.S. Department of Energy, on
Monday said it would buy 3 million barrels of crude oil for the
Strategic Petroleum Reserve for delivery in August.
Data from China, meanwhile, showed that industrial output and
retail sales growth undershot forecasts in April, suggesting the
world's No.2 economy lost momentum at the start of the second
quarter.
However, an 18.9% rise in China's oil refinery throughput in
April from a year earlier to the second-highest on record helped
to keep a floor under crude prices.
"The risks remain tilted to the downside amid a sluggish
recovery in China, uncertainty around the US economy and banking
system and the impact of much higher interest rates on demand,"
said OANDA analyst Craig Erlam.
With refiners building stockpiles ahead of the summer travel
season, May crude imports by China are moving towards 11 million
bpd, versus 10.67 million bpd in April, Refinitiv Oil Research
said.
China's June refinery intake is expected to grow by 1.5% month
on month, data compiled from Wood Mackenzie showed.
On the supply side, widespread blazes in Alberta, Canada,
shuttered at least 319,000 barrels of oil equivalent per day (boepd),
representing 3.7% of national production.
Global crude supplies could also tighten in the second half as
the Organization of the Petroleum Exporting Countries (OPEC) and
allies including Russia, together known as OPEC+, implement
additional output cuts.
Separately, U.S. oil output from the seven biggest shale basins
is due to rise in June to its highest on record, data from the
Energy Information Administration showed.
(Reporting by Ahmad GhaddarAdditional reporting by Yuka Obayashi
in Tokyo and Trixie Yap in SingaporeEditing by David Goodman)
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