Crude prices fell on Tuesday amid concerns that U.S. stockpiles will rise for a fifth week, which would continue to signal weaker demand.
According to analysts' forecasts, tomorrow's Energy Department report will show U.S. crude inventories rose from 2.3 to 2.5 million barrels the previous week. In the same forecast, gasoline supplies are expected to show a gain of 1.5 million barrels.
Crude oil futures for March fell $1.14, or 1.22 percent to $92.45 a barrel on the New York Mercantile Exchange at 5:04 p.m. Brent Crude fell 029 cents, or 0.31 percent to settle at $93.16 a barrel on London's ICE Futures Exchange.
Today the Dow Jones industrials rose more than 180 points after billionaire investor Warren Buffet, offered up to $800 billion in municipal bonds to reinsure the three major U.S. bonds insurers.
Yesterday, oil prices rose slightly, on a rally by U.S. stocks and Venezuela's threats to stop crude exports to the U.S.
Part of investors' concerns on supplies are due to Venezuelan President Hugo Chavez's threats on Sunday to cut crude exports to the U.S. after an international court ordered a freeze of $12 billion of Venezuela's oil company assets in a dispute with Exxon Mobil Corp.
Supply worries also increased Monday after an unidentified gunman in Nigeria attacked a naval vessel, killing a sailor and injuring another. Unrest in the country affected oil supplies last week as well, when a sabotaged pipeline forced Royal Dutch Shell PLC to call a force majeure situation, declaring it would not be able to meet all its export contracts from the Niger Delta region for two months. The country is Africa's top oil exporter.
The U.S. government inventories report will be released on Wednesday 10:30 a.m. in Washington.