Investing.com - Oil prices fell on Tuesday, snapping eight day of gains in what was the longest unbroken rally in more than five years as many traders closed positions ahead of the U.S. Independence Day holiday.
U.S. crude futures were at $46.91 a barrel by 04.30 AM ET (08.30 GMT), down 16 cents or 0.34%. U.S. crude closed up $1.03 or 2.2% at $47.07 a barrel on Monday.
Brent crude futures on the ICE Futures Exchange in London were at $49.52, off 17 cents or 0.34%. In the previous session Brent closed up 91 cents or 1.9% at $49.68 a barrel.
Oil slipped lower as traders took profits in the wake of the longest stretch of daily gains since February 2012 after data last week indicating that U.S. oil output is moderating.
Energy services firm Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil fell by two, the first decline in six months.
Despite the drop in drilling the total rig count was still more than double the 341 rigs in the same week a year ago the firm said.
The report came after figures from the U.S. Energy Information Administration showing that output fell by 24,000 barrels per day in April, the first drop this year.
But oil markets remain oversupplied despite output cuts brokered by the Organization of the Petroleum Exporting Countries.
In May, OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018.
Its efforts have been undermined by rising shale production in the U.S. and increased production by Libya and Nigeria, who are exempt from the production cuts.
Elsewhere on Nymex, gasoline futures were down 0.63% to $1.525 a gallon, while heating oil edged down to $1.509 a gallon.
Natural gas futures were at $2.962 per million British thermal units.