Oil corrects lower ahead of US inventory report

Oil prices on both sides of the Atlantic failed to sustain the previous rebound and dropped on Tuesday, mainly driven by a profit-taking slide ahead of the US weekly crude supply report.

Oil eyes US API report

Currently, both crude benchmarks trade lower to range bound, with Brent down -0.31% at $ 47.78, while WTI drops -0.20% to $ 45.84. Having booked more-than 3% gains a day before, oil prices are seen consolidating the upside, with oil markets awaiting the developments from the Algerian OPEC meeting and weekly crude stockpiles data for fresh direction.

Moreover, a broadly higher greenback, indicative of markets pricing-in Hillary Clinton as the winner in the first US election debate, also added to the downward pressure on the black gold.  A stronger greenback makes the dollar denominated commodity expensive for the foreign buyers.

Looking ahead, markets continue to monitor headlines from the Algerian meeting, especially in wake of the tensions between Saudi Arabia and Iran, which may restrain oil producers clinching oil output deal. Later today, weekly crude stockpiles data from API will remain in focus for further oil price-action.