REUTERS
Oil prices fell over half a dollar on Tuesday, extending losses from the previous session as concerns took hold that a six-week recovery may have petered out due to ongoing oversupply, Reuters reported.
The drops came after the Organization of the Petroleum Exporting Countries (OPEC) said that global demand for its crude would be less than previously thought in 2016 as supply from rivals proves more resilient to low prices, increasing the excess supply in the market this year, Reuters wrote.
OPEC expects global demand for its crude to average 31.52 million barrels per day (bpd) in 2016, down 90,000 bpd from last month's forecast.
Continuously high production figures mean that global output still exceeds demand by at least 1 million bpd, weighing on markets, the report notes.
International benchmark Brent crude futures LCOc1 were trading at $38.91 per barrel at 0724 GMT, down 62 cents from their last settlement.
U.S. crude futures CLc1 were 67 cents lower at $36.51 a barrel, according to the report.
Read alsoOPEC Gulf delegates say producers' meeting unlikely this monthAs reported earlier, Saudi Arabia and non-OPEC member Russia, the world's two largest oil exporters, along with Qatar and Venezuela have proposed major producers should freeze output at January levels to rein in the glut.
Read alsoOPEC lowers 2016 oil demand estimate, but production still growingBut with U.S. crude stockpiles continuing to hit new records and Iran showing little interest in joining such a freeze, analysts expect no fundamental change to the glut in the near future.