Oil prices fell on Tuesday, extending losses for a second straight session after rallying last week, but concerns about tightening Russian and Iranian supplies as Western sanctions mount limited losses.
Brent futures were down 8 cents, or 0.1%, at $76.22 a barrel by 0452 GMT, while WTI crude was down 15 cents, or 0.19%, at $73.42.
Oil fell on Monday after rising for five days in a row to its highest since October on Friday on expectations of more fiscal stimulus from China to revive its faltering economy.
The weakness this week is likely due to a technical correction, with investors reacting to weaker economic data that has dampened earlier optimism globally.
The rising supply from non-OPEC countries, combined with weak demand from China, is holding oil prices down. The oil market is expected to be adequately supplied, even with ample supply, this year.
Market participants are expecting the US December nonfarm payrolls report and more data on Friday that will provide clues about US interest rate policy and the outlook for oil demand.
The rally in crude oil prices appears to be losing momentum, with fundamentals still expected to be comfortable, despite some tightening in the physical market.
However, concerns about tightening supplies from Russia and Iran amid sanctions have kept a floor under oil prices.
The uncertainty has helped fuel demand for Middle Eastern oil, reflected in Saudi Arabia’s February rise in Asia.
The US Commodity Futures Trading Commission said on Monday that money managers increased their net long US crude futures and options positions in the week to December 31.
