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Brent crude futures dipped 9 cents to $82.54 a barrel by 0933
GMT and U.S. West Texas Intermediate crude futures was down 19
cents at $79.94.
Brent crude has remained relatively steady in the past month,
hovering between $82 and $88 a barrel.
The U.S. Federal Reserve is due to review policy next on July
30-31, when investors expect it to keep rates unchanged, though
there have been indications that a cut will happen at the
September meeting.
News that President Biden decided on Sunday to abandon his
re-election bid was not a major factor for oil markets. He has
endorsed Vice President Kamala Harris as the candidate who
should face Republican Donald Trump in the November election.
"We think the ability of the U.S. president to influence U.S.
oil production is probably overrated," said Suvro Sarkar, energy
sector team lead at DBS Bank, noting that U.S. output reached
record highs last year despite the Biden's administration's
moves to address climate change.
"If anything, a Trump presidency could influence higher demand
for oil in the U.S., given his anti-EV stance," Sarkar added.
That could offset some of the support markets have gained from
recent OPEC+ production cuts, said IG analyst Tony Sycamore.
The flipside to unrestricted oil production in the U.S. could
well be lower oil prices, which may have the unintended impact
of forcing marginal producers to mothball production, Sycamore
added.
China's slower than expected economic growth of 4.7% in the
second quarter sparked concerns last week over the country's
demand for oil and continues to weigh on prices.
On Monday, China surprised markets by lowering a key short-term
policy rate and benchmark lending rates to boost the economy.
On Sunday China released a policy document after a leaders'
meeting that largely outlined known ambitions, from developing
advanced industries to improving the business environment.
Analysts did not spot any imminent sign of structural shifts in
the world's second-biggest economy.
(Reporting by Paul Carsten in LondonAdditional reporting by
Katya Golubkova and Colleen HoweEditing by David Goodman)
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