|Published : 20 Sep 2016, 14:44:14|
Oil prices slip
Oil prices fell on Tuesday after Venezuela said that global supplies needed to fall by 10 per cent in order to bring production down to consumption levels.
Technical indicators also pointed to cheaper crude futures.
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.
International benchmark Brent crude oil futures were trading at $45.82 per barrel at 0649 GMT, down 13 cents from their last close.
US West Texas Intermediate (WTI) crude futures were down 19 cents at $43.11 a barrel.
Technical market indicators were also weak, with WTI likely to test support at $42.78 per barrel soon, after which a fall towards $42 would be likely, according to Reuters analyst Wang Tao.
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.
Along with other money managers, they cut their combined short position in the three main Brent and WTI contracts by 36 million barrels in the week to Sept. 13, according to Reuters.