Investing.com - Oil prices were lower on Tuesday as weak factory data out of Japan and the euro zone underlined concerns over the demand outlook, but losses were held in check amid uncertainty over supplies out of Saudi Arabia.
Brent crude fell 60 cents to $64.17 a barrel by 9:28 AM ET (1:28GMT) while U.S. WTI crude futures were at $58.12, down 52 cents.
"The demand side of the equation is back in focus," Michael McCarthy, senior market analyst at CMC Markets in Sydney said, pointing to sluggish manufacturing numbers in leading economies in Europe as well as Japan.
"That's why we're seeing a little bit more (downward) pressure on Brent than West Texas at the moment."
Still, oil prices remained at comparatively elevated levels for the year in the wake of the mid-month attack on Saudi Arabia's largest oil processing facility that halved output at the world's top oil exporter.
Reuters reported that Saudi Arabia has restored more than 75% of crude output lost after attacks on its facilities and will return to full volumes by early next week. But the Wall Street Journal reported on Monday that repairs at the plants could yet take months longer than anticipated. Other reports suggest that Saudi Arabia is buying crude from other suppliers to help meet its short-term commitments to clients.
European powers - Britain, Germany and France - backed the United States in blaming Iran for the Saudi oil attack, urging Tehran to agree to new talks with world powers on its nuclear and missile programs and regional security issues.
Energy traders were looking ahead to the weekly inventory report from industry group American Petroleum Institute later Tuesday ahead of stockpile data from the Energy Information Administration on Wednesday.
--Reuters contributed to this report