The price of Brent crude declined to just above $88 a barrel on Tuesday due to ample supply, despite slim chances of a cut in oil production by Organization of the Petroleum Exporting Countries (OPEC).
According to Reuters, Brent crude fell 52 cents to $88.37 a barrel and US crude dropped 48 cents a barrel to settle at $85.26.
The worldwide oil benchmark has dropped by more than 20% from its high in June due to increased supplies and a reduction in demand in the US, Europe and China.
Investors, who are anticipating an output cut from OPEC, were disappointed as Saudi Arabia and Kuwait played down talk of any reduction.
OPEC, which produces about 40% of the worldwide crude oil total, is scheduled to meet next month in Vienna, Austria to discuss production targets.
The news agency reported that China saw a strong rebound in commodities imports in September compared with August.
Several analysts anticipate oil markets will recover before peak winter demand in the Northern Hemisphere.
Investors are now awaiting weekly oil inventories data from the US for price direction.
A survey by Reuters has revealed that US commercial crude stocks were estimated to have increased in the week ended 10 October, while refined products have declined.
The American Petroleum Institute will release its report on Wednesday, while the US Department of Energy’s Energy Information Administration will unveil its weekly data on Thursday.