Investing.com – Crude futures settled more than 2% lower on Tuesday, as investors weighed the impact of an OPEC-led deal to drain the glut in supply against the uptick in global output.
On the New York Mercantile Exchange crude futures for June delivery lost 2.4% to settle at $47.66 a barrel, while on London's Intercontinental Exchange, Brent lost 2.45% to trade at 50.25 a barrel.
Oil prices slid 2%, adding to the 1% loss sustained in the previous session, as investors fretted about the sharp rise in U.S. production, despite expectations that U.S. crude stockpiles are set to fall for a fourth straight week.
For the week ended April 26, it is widely expected that the Energy Information Administration on Wednesday, will reveal U.S. crude stockpiles fell by 2.3 million barrels.
Expectations for a fourth-straight week of drawdowns in crude stockpiles come amid a bearish and bullish production update from both Libya and Russia, respectively.
Russian oil production fell to 11 million bpd last month, close to its output target under the deal with OPEC, Energy Ministry data showed on Tuesday.
In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8 million barrels per day (bpd). The deal to cut supply came into effect in January this year for a period of six-months until June.
Meanwhile, Libya added to the glut in supply, after the country resumed output and production rose above 760,000 bpd to the highest rate since 2014, Mustafa Sanalla, chairman of the National Oil Corp. said on Monday.
Elsewhere, investors are likely to focus on inventory data from the American Petroleum Institute (API), scheduled for 16:30 EDT on Tuesday.