Brent crude futures were trading at $47.98 per barrel at 0109 GMT, down 34 cents, or 0.7 percent, from their last settlement. U.S. West Texas Intermediate futures were down 41 cents, or 0.9 percent, at $45.88 a barrel.
According to traders, the price falls on Tuesday were an indication that increasing oil drilling activity in the United States was still a concern even as crude prices closed higher on Monday because of a weaker dollar.
“People are seeing that rally we had on a very big decline in (U.S.) inventories last week is a bit of a selling opportunity,” said CMC Market chief market analyst Ric Spooner.
Oil’s 4 percent price decline since Sept. 8 partly reverses a 10 percent rally early in the month, which was fuelled by speculation that oil exporters could cap production.
“Investor appetite (for commodities) remains subdued,” Australian bank ANZ said in a note. “Any disappointment in economic data released in China today will see prices come under further downward pressure.”
China is due to release August monthly industrial output and retail sales data, as well fixed-asset investment figures.
China’s state oil refiners are readying to export more diesel and gasoline in coming months as a bleak outlook for what is typically the nation’s period of greatest consumption sends shivers through an already saturated global market.
