Crude Oil Resumes Downward Fall

After seeing a brief lift on Monday, Brent crude oil prices continued its steady decline on Tuesday as markets turned their attention back to oversupply worries. The commodity traded at $62.10 at 7:55 GMT as the growing global supply glut overshadowed a conflict in Libya.

Over the weekend, clashes between government forces and rebel groups in Libya ended with one of the nation’s largest refineries battling fires. Though the situation is now under control and the majority of the fires have been put out, the North African nation’s oil exports have fallen to 230,000 barrels per day as a result of the damage.

Still, oversupply concerns continued to plague the market as traders expect global supply to continue far outweighing demand. The Wall Street Journal reported that the energy data service Genscape has projected U.S. crude stockpiles to increase by several million barrels, which pushed prices even lower.

Now, markets will have a close eye on U.S. inventory data, due out on Tuesday and Wednesday. Later in the day, the American Petroleum Institute will release its report on U.S. oil stocks, while the more closely watched Energy Information Administration’s version of the same report is due out on Wednesday.

Though an unexpected draw in U.S. stocks could have a positive effect on crude prices, most see the commodity continuing on its downward trajectory into 2015. Prices are set to post the largest annual decline since 2008, and many believe 2015 could see prices as low as $50 if production remains constant.