Oil prices steady with market structure pointing to tight supply

Oil steadied near $53 a barrel as signs of tightening supplies around the world offset concerns over the pandemic’s latest hit to demand. US industry data pointed to a sharp drop in the nation’s crude stockpiles last week. If confirmed by government figures due Wednesday it would a sixth draw in seven weeks, compounding signals of reduced supply from other regions.

Saudi Arabia and Iraq are throttling back supplies next month as the OPEC+ coalition seeks to shore up prices against resurgent virus infections and new lockdowns. Russia is reducing seaborne exports and Libya has seen shipments interrupted by internal turmoil.