Oil futures down on inventory expectations

Crude oil futures fell Tuesday in anticipation of a report due Wednesday that most analysts expect to say that U.S. crude oil inventories have increased.

Prices were also affected by comments from OPEC officials that implied that the oil market was oversupplied just a day after Saudi Arabia told the United States that it would increase its output of crude oil if the market demanded it.

Most analysts expect the Wednesday report to show a 500,000 barrel increase in U.S. crude oil stockpiles, as well as a rise in gasoline and distillates inventories. Some analysts, however, are predicting a drop in the crude oil inventory.

IPE Brent for June delivery fell 89 cents per barrel to $53.51 in late afternoon trading in London after falling to $53.42 earlier in the day. June Delivery West Texas Intermediate crude futures fell $1.12 to $53.36 per barrel on the New York Mercantile Exchange.

Petroleum products futures also fell on the Nymex. May Nymex unleaded gasoline fell 3.67 cents to $1.6140 per gallon, while May Nymex heating oil was down 2.61 cents to $1.4920 per gallon.

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