Crude oil prices are drifting lower on Tuesday, with traders speculating a possible drop in demand for oil due to uncertainty about the outlook for global economic growth.
Also, with U.S. crude inventories having risen for four straight weeks, traders stay wary of making significant purchases ahead of release of inventory data.
While the American Petroleum Institute is scheduled to come out with its weekly oil report later in the day, the official inventory data from the U.S. Energy Information Administration is due tomorrow morning.
Crude oil futures for December are down $0.97, or 1.40%, at $68.20 a barrel.
While there are some expectations that there could be a supply shortage in the market post implementation of sanctions against Iranian oil from November 4, several analysts believe that the sanctions may not any significantly hurt supply as Saudi Arabia has pledged to make up for the loss of Iranian oil, by playing a 'respondible role' in the market.
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