Investing.com - Crude prices dipped in Asia on Tuesday ahead of weekly industry inventory estimates in the U.S. that could show another draw in stocks.
On the New York Mercantile Exchange crude futures for November delivery fell 0.28% to $50.44 a barrel, while on London's Intercontinental Exchange, Brent dipped 0.27% to $55.94 a barrel.
Ahead the American Petroleum Institute (API) will release its estimates of crude and refined product stocks, followed by official data from the Energy Information Administration on Wednesday.
Crude oil inventories are seen down by 467,000 barrels, while distillates likely declined by 1.1917 million barrels and gasoline stocks rose 967,000 barrels.
Overnight, crude oil prices settled lower on Monday amid signs of an uptick in crude output as data showed Opec oil output rose last month while an increase in U.S. drilling activity pointed to rising domestic production.
Sentiment on oil prices soured as data showed a dip in Opec’s September compliance with the global pact to curb output, fuelling fresh doubts over the oil-cartel’s commitment to rein in output.
A recent Reuters poll revealed that output among the Organization of the Petroleum Exporting Countries rose by 50,000 barrels a day in September as the cartel’s overall compliance with its production-cut agreement fell to 86%. The dip in compliance comes after both Nigeria and Libya – two countries exempt from the production-cut agreement – ramped up output.
Production in Libya rebounded 30,000 barrels a day to 920,000 barrels in September as the Sharara field restarted after a halt of more than two weeks while Nigerian output increased by 20,000 barrels to 1.77 million barrels a day.
Nigeria agreed in July to support OPEC's production cap but only after its crude output reaches 1.8 million barrels per day.
The rise in Opec production dampened recent optimism on oil prices which followed after Opec revealed at a meeting last month that its members’ compliance with the global accord to curb output hit record highs in August.
Adding to fears of higher global output was a report from oilfield services firm Baker Hughes on Friday showing oil rigs operating in the United States rose by 6 to 750.