Oil Steady After Biggest Drop In Three Weeks With Glut In Focus

Oil steadied after the biggest drop in almost three weeks, as traders look to reports later this week for confirmation of a glut.

West Texas Intermediate held near $59 a barrel after losing 2% on Monday, while Brent crude closed above $62.

The US Energy Information Administration is due to publish its short-term energy outlook later Tuesday, before monthly reports on Thursday from the International Energy Agency and OPEC that may provide further insights into the size of a global oversupply as production outpaces tepid demand. 

Crude has traded in a tight $4 a barrel range since the start of November as traders also weighed the impact of sanctions against Russia and potential curtailment of exports from the major producer.

India, the top buyer of seaborne crude from Moscow, is set to reduce its intake, while the purchases are also likely to be a key talking point in trade negotiations with the US this week.