Oil futures settled lower Tuesday after a failed attempt to recoup some losses from a more than 5% drop a day earlier.Traders weighed supply-and-demand prospects on the back of the latest reports from the Organization of the Petroleum Exporting Countries and the International Energy Agency, as well as trade data from China.“The market is all over the place,” said Matt Smith, director of commodity research told MarketWatch. After a strong selloff Monday, he expected Tuesday’s earlier rebound to “be stunted by weak data out of China and a bearish-tilted IEA report—leaving crude to lick its wounds and consolidate.”
November West Texas Intermediate crude CLX5, +0.19% settled at $46.66 a barrel, down 44 cents, or 0.9%, on the New York Mercantile Exchange. It climbed to as high as $48.43, but also fell to as low as $46.60. Prices lost 5.1% on Monday for the largest single-day drop since Sept. 1.
“The market psyche is gradually switching” from the current fundamentals of a heavily oversupplied market to ‘tomorrow’s prices today’—a market likely to eradicate the surplus by 2017, and at least endure thinner oversupplies in 2016,” Matthew Parry, senior oil analyst at the International Energy Agency, told MarketWatch.