Oil prices fell on Tuesday after Venezuela said that global supplies needed to fall by 10% in order to bring production down to consumption levels, and technical indicators also pointed to cheaper crude futures, Reuters reported.
Global oil supply of 94 million barrels per day needs to fall by about a tenth if it is to match consumption, Venezuela`s Oil Minister Eulogio Del Pino said on Monday, according to Reuters.
International benchmark Brent crude oil futures LCOc1 were trading at $45.81 per barrel at 0139 GMT (09:39 p.m. EDT), down 17 cents from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 22 cents at $43.08 a barrel, according to the report.
Technical market indicators were also weak, with WTI likely to test support at $42.78 per barrel soon, after which a fall toward $42 would be likely, according to Reuters analyst Wang Tao.
For Brent, he said that prices may test support at $45.63 per barrel and, failing to hold that level, could fall to just over $45 a barrel.
Despite the bearish market mood on Monday, hedge funds scaled back some of their short positions in crude oil futures and options after prices failed to fall further, suggesting the market was running out of negative momentum.