Oil steadied after a modest decline on Tuesday as expectations of a supply glut and a trade war between the world's two largest economies weighed on the demand outlook.

West Texas Intermediate crude futures were trading above $61 a barrel, with Brent crude closing near $65 in the previous session. The International Energy Agency on Tuesday cut its forecast for global oil consumption this year and next as trade tensions escalated. The supply build is likely to be more than enough to meet consumption, it said in a monthly report.

Crude prices remain near four-year lows, after a sharp drop earlier this month caused by an onslaught of tariffs and retaliatory levies between the U.S. and its biggest trading partners including China. Initial panic in broader financial markets has given way to a fragile calm for now, with traders in U.S. Treasury bonds — among the assets most exposed to tariff moves — moving to neutral.

WTI for May delivery dipped 0.1% to $61.30 a barrel at 7:21 a.m. in Singapore.

Brent for June settlement closed 0.3% lower at $64.67 a barrel on Tuesday.(Newsmaker23)

Sumber: Bloomberg