Investing.com - Crude oil prices dipped in Asia on Tuesday as investors warited U.S. stockpile industry estimates and looked ahead to demand and supply cues on Iran.
The American Petroleum Institute will release figures on crude and refined stocks last week in the U.S., ahead of more closely-watched data due on Wednesday from the U.S. Department of Energy.
Last week, the U.S. Energy Information Administration (EIA) said U.S. crude inventories increased by 400,000 barrels for the week ending on July 3, above expectations for a 500,000 draw.
Energy traders are keeping a close eye on U.S. stockpiles, as inventories levels reached 465.8 million barrels last week, one of its highest totals in the last 80 years.
On the New York Mercantile Exchange, WTI crude for August delivery fell 0.80% to $51.78 a barrel.
Overnight, crude futures moved lower on Monday, amid a stronger dollar supported by a preliminary Greek bailout deal and further delays in Iranian nuclear talks.
On the Intercontinental Exchange (ICE), Brent crude for August delivery reached a session-high of $59.14 a barrel, before dipping to $58.17, down 0.81 or 1.38% on Monday.
On Monday afternoon, Iran foreign minister Mohammad Javad Zarif told the Iranian News Agency that no deal will be reached on a comprehensive nuclear deal before the expiration of a midnight deadline. Over the last two weeks, Iran and a group of six western powers have extended the deadline on a final agreement three separate times amid sticking points on the easing of missile, political and economic sanctions against the Gulf state.
The White House, meanwhile, emphasized that "genuine progress," had been made in the negotiations in spite of the further delays.
A nuclear deal is viewed as bearish for crude, as Iran reportedly hoards 30 million barrels of crude in its reserves ready for export. An outflow of Iranian oil could depress crude prices in a global market already oversaturated by a glut of oversupply. It is widely believed that Iran will ramp up exports if a host of severe economic sanctions are lifted by western powers.
Facts Global Energy, an energy consulting firm, forecasts that the Iranian oil exports could reach a level of 1.7 million barrels per day within 12 months of a final agreement. When Iran and its negotiating partners reached a temporary nuclear agreement in April, crude futures plunged by more than 1.4% in less than an hour after the announcement, amid mounting concerns of oversupply in the energy markets.
On Friday, oil services firm Baker Hughes (NYSE:NYSE:BHI) said the U.S. oil rig count last week edged up by five to 645, marking the second consecutive week of weekly builds. A week earlier, U.S. oil rigs rose by 12 to 640, ending a 29-week streak of weekly draws.
In Brussels, Greece and its international creditors reached a deal on a principal agreement for a bailout through the European Stability Mechanism (ESM) that could provide the cash-strapped nation with up to €86 million over the next three years. Investors abandoned their positions in the euro and piled into the dollar, as EUR/USD plunged more than 1.4% to 1.1001.