Oil traded lower on Tuesday with Brent Crude losing -1.38%, currently trading at USD57.72 a barrel - the lowest in two weeks. West Texas Intermediate declined -0.66% currently quoted at USD49.67.
Market participants now look ahead to the API Crude Oil Inventories to see whether stockpiles in the U.S., the world's largest consumer of oil, grew. Tomorrow the government report on stockpiles is expected to show an increase.
Weaker than expected Chinese PPI data reported today fuelled concerns about economic growth of the world's second largest consumer of oil.
On Sunday OPEC Secretary-General Abdullah al-Badri said that OPEC members should not lower production as this would only help U.S. producers with their higher-cost shale. Data from Baker Hughes on Friday showed that U.S. rig-numbers further declined by 63 - the lowest count since June 2011.
Oil prices declined by almost 60% between June 2014 and January 2015 and recovered by almost 35% in 2015.Although prices rebounded after setting new lows, worldwide supply still exceeds demand in a period of low global economic growth, pushing stockpiles to record highs and weighing on prices.