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(Bloomberg) — Oil steadied near a six-week low as traders waited for fresh clues on market balances, including the outlook for US stockpiles.

Global benchmark fluctuated around $82 a barrel after shedding more than 3% over the previous two sessions, while West Texas Intermediate traded near $78. The recent drop came amid sales by algorithmic traders, which have exacerbated the downward pressure driven by concerns over Chinese demand.

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The industry-funded American Petroleum Institute will issue its estimate for weekly shifts in US inventories later on Tuesday, followed by a government breakdown the following day. Nationwide crude stockpiles have dropped for the past three weeks, hitting the lowest level since February.

Crude prices remain higher year-to-date, helped by OPEC+ supply cutbacks and expectations for lower US interest rates, perhaps as soon as September. Political risks remain front and center as investors weigh the implications of US President Joe Biden dropping his reelection bid.

“Oil is starting to feel as if it is heading for the doldrums,” said John Evans, an analyst at brokerage PVM. 

“Canadian wildfires and predicted draws in US crude and gasoline stocks are very much keeping the bull story alive,” he added. However, the succession of demand markers, imports and a lack of cohesive plan for stimulus in China “offer a wet blanket and give pause for those on the lookout for a print above $90/barrel in Brent.”

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