Brent crude oil prices fell on Tuesday following amid reports of higher supply from the Middle East, despite conflicts in Iraq, Syria, and Yemen.
Strengthening of green back also weighed on the prices as the dollar reached one week high, making oil dearer for buyers in other currencies.
Front-month Brent futures declined 2 cents at $66.25 a barrel, while in the US, West Texas Intermediate (WTI) crude futures increased 16 cents to $59.59 a barrel, Reuters reported.
Crude futures rose on Monday with geo-political troubles in the Middle East adding to the supply concerns.
“There are no signs that growth is benefiting from lower oil prices. By now, demand should have started to strengthen.”
However the prices were weighed down by higher supply by Saudi Arabia which recorded its highest monthly export level in ten years.
During March, the country has exported 7.898 million barrels of crude per a day which is highest since November 2005.
The crude export from Saudi Arabia grew from January and February, increasing fears that the crude surplus supply will continue to grow.
Adding to the concern, Iran officials indicated that OPEC countries could decide to maintain their production level during the next month meeting.
HSBC told the news agency: “The trouble is, there are no signs that growth is benefiting from lower oil prices. By now, demand should have started to strengthen. Instead, the first quarter probably represented a new low in the region’s growth since the global financial crisis.”
WTI crude futures in the US increased due to the start of the summer season during the forthcoming Memorial Day weekend.
Motorists’s advocacy group AAA said between 21 and 25 May approximately 37.2 million people would travel 50 miles or more from home.
This represents an increase of 4.7% from the 35.5 million people who travelled during the holiday weekend in 2014.
