Oil futures receded on Tuesday as the U.S. benchmark fell below $50 a barrel while evidence pointed to an OPEC production increase, according to Bloomberg MarketWatch.
On the New York Mercantile Exchange, September West Texas Intermediate crude fell $1.01, or 2%, to settle at $49.16 a barrel.
October Brent crude, the global benchmark, lost 94 cents, or 1.8%, to end trading at $51.78 a barrel on London’s ICE Futures Exchange. The decline ended a six-day win streak for both benchmarks.
Inventory reports from the American Petroleum Institute are expected to arrive late Tuesday as well as a further report from EIA late Wednesday.
Analysts say two factors – slowing production and dwindling domestic inventories – have buoyed recent investor confidence in crude oil. That positive mood helped push the U.S. benchmark above $50 a barrel for the first time in two months.
On Monday, an EIA report revealed that domestic growth might be easing, as May’s growth was the second slowest of 2017.
September natural gas rose 2.5 cents, or 0.9%, to settle at $2.819 per million British thermal units on the New York Mercantile Exchange.