Oil prices were steady on Tuesday after gaining more than 2 per cent the previous day on easing economic slowdown concerns.

Brent, the benchmark for two thirds of the world’s oil, was down 0.74 per cent at $76.44 a barrel at 11.10am UAE time. West Texas Intermediate, the gauge that tracks US crude, was trading 0.71 per cent lower at $72.64 a barrel.

On Monday, Brent settled 2.27 per cent higher at $77.01 a barrel while WTI was up 2.55 per cent $73.16 a barrel.

“The oil market was extremely oversold and it will probably continue to stabilise as long as Wall Street is still confident the Fed will cut rates later this year,” said Edward Moya, senior market analyst at Oanda.

“Oil prices won’t be able to rise that much from here given all the growth demand fears, but expectations are high for Opec+ to try to keep prices above the $70 a barrel level.”

Last week, oil futures posted a third straight week of losses amid concerns of a recession in the US and signs of weak crude demand in China, the world’s largest energy importer.

Traders are awaiting April's US consumer price inflation numbers, a key inflation metric, to better understand future US Federal Reserve monetary policy. The report will be released on Wednesday.

Last week, the American central bank raised interest rates by 25 basis points, its 10th consecutive increase, and indicated a possible pause in future meetings.

Futures were also supported by supply disruptions in Canada.

On Saturday, Alberta, the primary oil-producing province in Canada, announced a state of emergency caused by wildfires. This has led to the closure of the production of the equivalent of at least 280,000 barrels per day, equating to more than 3 per cent of the country's total.

Some members of the Opec+ will start voluntary output cuts this month.

Brent crossed $85 a barrel last month after Opec+ producers announced combined voluntary output cuts of 1.16 million barrels per day to ensure oil market stability.

Last week, Swiss lender UBS said it was retaining a positive outlook on the oil market and expected it to tighten on the group's cuts and rising demand over the coming months.

“Flight activity has rebounded strongly this year, with activity around 2019 levels,” UBS strategist Giovanni Staunovo said in a research note. “Generally, we see oil demand holding up and look for even higher demand over the coming months.

“The lower potential Opec+ crude production and exports should help the oil market tighten, supporting our view that oil inventories will begin to decline and support prices.”