Oil prices held steady in Asian trading on Tuesday as market participants weighed the potential impact of Tropical Storm Francine on U.S. oil production against ongoing concerns about sluggish global demand.
Brent oil futures for November delivery remained unchanged at $71.86 per barrel, while West Texas Intermediate crude futures stabilized at $67.90 per barrel as of 22:37 ET (02:37 GMT).
This stability follows a rebound in prices on Monday, which helped offset some of the steep losses experienced in the previous week.
Tropical Storm Francine is advancing towards the U.S. mid-South, prompting numerous oil companies to halt production and refining activities in the Gulf of Mexico.
The storm is forecast to potentially intensify into a hurricane before making landfall, bringing heavy rain and strong winds to the upper Texas and Louisiana coasts this week.
This development could lead to extended disruptions in the energy-rich Gulf region, potentially tightening crude supplies in North America and offering some support to oil prices.
However, the market continues to grapple with concerns over slowing global oil demand, particularly in China, the world's largest crude importer.
Recent weak economic data from China has exacerbated worries about slowing growth, while increasing electric vehicle adoption in the country is seen as a factor potentially reducing fuel demand.
Beyond China, caution over U.S. interest rates is also influencing oil markets, especially ahead of key inflation data due later this week.
