Investing.com - West Texas Intermediate oil futures fell sharply on Tuesday, as market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
Crude oil for delivery in November on the New York Mercantile Exchange lost $1.00, or 2.13%, to trade at $45.96 a barrel during European morning hours.
The American Petroleum Institute will release its inventories report Tuesday, while Wednesday’s government report could show crude stockpiles fell by 1.0 million barrels in the week ended September 18.
A day earlier, Nymex oil prices soared $1.94, or 4.31%, amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer.
According to industry research group Baker Hughes (NYSE:BHI), the number of rigs drilling for oil in the U.S. decreased by eight last week to 644, the third straight weekly decline.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery dropped 70 cents, or 1.43%, to trade at $48.22 a barrel during morning hours in London.
On Monday, Brent futures rallied $1.45, or 3.05%, as traders bet on further declines in global crude production.
Crude oil prices have lost nearly 60% since last summer as ongoing concerns over a glut in world markets drove down prices.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.26 a barrel, compared to $1.96 by close of trade on Monday.
Investors were looking ahead to Chinese manufacturing data on Wednesday, as well as surveys of the euro zone private sector for fresh indications on the condition of the global economy.