Largely Holding Monday Losses

Brent crude has tracked tight ranges in the first part of Tuesday trade. We were last near $76.35/bbl in terms of the benchmark front month contract, slightly above end Monday levels (+0.30%). This follows Monday's sharp 3.35% pull back amid fresh demand concerns, with Saudi Arabia cutting prices by more than expected to its Asian customers over the weekend. The WTI benchmark has tracked a similar trajectory and sits near $70.90/bbl in recent dealings.

• The benchmarks are largely holding Monday losses at this stage, although we are above intra-day lows from Monday (near $75.25/bbl for Brent).
• The Saudi price cut, robust non-OPEC supplies, and a fall in fund net-long positions indicate bearish sentiment in the space.
• Broader USD sentiment has softened today, which has likely helped oil stabilize further at the margins.
• Looking we get the EIA releases its Short Term Energy Outlook in US trade on Tuesday. The US API report on inventories will publish later in the session as well.