Oil steadies as traders weigh up surplus concerns and sanctions

OIL steadied as traders weighed concerns about a glut and fallout from US sanctions against Russia at the start of a data-heavy week.

Global benchmark Brent traded above US$63 a barrel after two weekly declines, while West Texas Intermediate was below US$60.

Traders are concerned that worldwide output is poised to run ahead of demand, with market outlooks due this week from Opec, as well as the International Energy Agency.

US sanctions also remain in focus after the Trump administration targeted Rosneft PJSC and Lukoil PJSC in a bid to raise pressure on Russia to end the war in Ukraine. Hungary - which is reliant on Moscow for energy supplies - won an exemption from the curbs after talks with Washington.

Crude has dropped in five of the last six weeks, as the surplus jitters gain greater traction in the market.

The Organization of the Petroleum Exporting Countries and its allies including Russia have been loosening output curbs ahead of a planned pause in hikes next quarter. At the same time, drillers from outside the alliance including the US have also been adding barrels.

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Opec is due to release its monthly market analysis on Wednesday, with the IEA issuing its annual outlook the same day, followed by a regular monthly snapshot on Thursday. In addition, the Energy Information Administration is scheduled to publish the weekly breakdown of US inventory shifts despite the US shutdown. BLOOMBERG