Oil was steady in Asian trading after an industry report pointed to shrinking U.S. crude and gasoline stockpiles as the market took a breather following a sustained slide that dragged prices below $65 a barrel.
Futures in New York fluctuated after losing 1.9% over the past three days. The American Petroleum Institute reported crude inventories dropped by 1.05 million barrels last week, according to people familiar with the figures. If confirmed by government data on Wednesday, it would be the first draw since mid-February and snap a run of large gains following the U.S. cold blast.
Investors will be watching for signs of demand recovery and higher liquidity with a monthly International Energy Agency report and Federal Reserve policy statement due Wednesday. The market will also get a snapshot on the health of U.S.-China relations following high level talks at the end of the week.
