Investing.com – Crude oil prices settled lower a day ahead of inventory data expected to show domestic crude oil supplies rose for the second straight week amid a slowdown in refinery activity.
On the New York Mercantile Exchange crude futures for March delivery fell 76 cents to settle at $63.39 a barrel, while on London's Intercontinental Exchange, Brent lost 84 cents to trade at $66.78 a barrel.
Crude prices extended their retreated as sentiment remained bearish ahead of the Energy Information Administration’s weekly inventory data expected to show that both crude oil supplies and output rose last week.
Investor fears of a rise in domestic oil stockpiles comes as refinery maintenance season gets underway, lowering both refinery activity and demand for crude oil while pressuring crude oil prices.
Crude oil production, meanwhile, is expected to remain above 10 million barrels a day as US shale producers ramp up output to take advantage of higher oil prices.
Sentiment on crude oil has turned bearish in recent sessions despite ongoing efforts from major oil producers to curb production - as part of the OPEC-led output cut agreement- and the rise in oil demand growth.
Norbert Ruecker, head of macro and commodity research at Julius Baer said “the sentiment cycle has finally turned,” which could trigger near-term headwinds for oil prices.
The American Petroleum Institute weekly inventory report is slated for Tuesday after US markets close, while the EIA issues its supply totals Wednesday at 10:30 a.m. ET.