Oil falls ahead of US crude inventories data

Oil prices continued to drop as the US market opened on Tuesday, to head for the first loss in 3 days, amid doubts about the global demand recovery, and ahead of the release of the US crude inventories preliminary data.

US crude fell 0.9% to $41.28, after opening at $41.65, and hit an intraday high of $41.91, and Brent fell 0.5% to $43.32, after opening at $43.56, and hit an intraday high of $43.82.

The US crude gained 1% yesterday, and Brent futures rose 0.3%, posting the second straight daily gain on hopes about the US extending its stimulus measures.

Doubts remain about the global demand recovery, especially as the US government continues to fail on containing the coronavirus outbreak, and a spike of new cases in some European countries, especially Spain.

Oil prices are also weighed down by fears over the trade relations between the US and China, after the escalation of diplomatic tensions between two countries.

The American Petroleum Institute will release later today its preliminary data on US crude inventories, while the Energy Information Administration will reveal its official report tomorrow.