Calm trend in oil

Oil is trading sideways after two days of declines, with the dollar and the outlook for monetary policy in focus. Brent crude traded below $85 a barrel after losing 0.6% in the previous two sessions, while U.S. crude was near $82. The U.S. currency gained on Monday after the assassination attempt on U.S. presidential candidate Donald Trump, a headwind for commodities including oil. Still, Fed Chairman Jerome Powell said recent U.S. economic data gave policymakers greater confidence that inflation was under control, which could signal lower borrowing costs and a weaker dollar. Crude has risen this year, supported by OPEC+ supply cuts and U.S. rate cut expectations. But China remains a major risk to the crude market, with the country posting its slowest growth since the first quarter of 2023. The country’s Third Plenum, which sets broad economic and political policies, is due this week. Commonwealth Bank of Australia analyst Vivek Dhar said the "slowdown" in China "still reflects the weak Consumer Confidence narrative" and that would likely put downward pressure on oil prices.