Oil prices have fallen following an increase in US oil inventories.
Brent crude declined 62 cents at $56.42 a barrel, while the US crude traded down 71 cents and held above $50 a barrel, Reuters reported.
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The American Petroleum Institute (API) released industry data on Tuesday, which highlighted an increase of 2.3 million barrels in crude inventories last week at the Cushing, Oklahoma hub.
PVM Oil Associates analyst Tamas Varga told the news agency: "The US crude oil stocks build reported by the API last night is weighing on prices."
Oil traders are now keenly watching Energy Information Administration (EIA) today to get further clarity on the crude inventories.
The build-up of oil inventories is against that of analysts’ expectation of a 1.6 million-barrels decline in stockpiles.
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By GlobalDataA decline in dollar value by 0.02% made it cheaper for other currency holders to purchase oil contracts, which helped the crude oil prices to fall further.
Sources said that China’s diesel exports are expected to increase in August as its local market is not in a position to absorb more output from refineries, which could put further pressure on prices.
