Investing.com - Oil prices extended early losses on Tuesday amid fears that a recent recovery in the market has run its course and as traders turned their attention to U.S. inventory data amid expectations for another increase to record highs.
Crude oil for May delivery on the New York Mercantile Exchange was down 1.32 cents, or 3.35%, to trade at $38.07 a barrel by 10.37 EST after ending the previous session down 7 cents at $39.39.
Global benchmark Brent fell 1.21 cents to $39.67.
Oil prices have rebounded around 45% from 12-year lows hit in February with hopes that key producers will agree on a plan to cap output in order to tackle a global glut playing a major part in the recovery.
Indications that U.S. shale oil producers are cutting back on drilling activity have also boosted prices.
But the rally may be petering out amid growing doubts over the outcome of a meeting of major producers in Doha next month to discuss an output freeze.
Iran said Tuesday it expects to attend the April 17 meeting, but added that this does not mean it will take part in negotiations over a production freeze.
Traders were also looking ahead to supply data after U.S. crude inventories jumped to record highs last week, underlining concerns about oversupply.
The American Petroleum Institute will release its weekly inventory data on Tuesday at 20.30 GMT, while the U.S. Department of Energy's Energy Information Administration will publish its report on Wednesday at 14.30 GMT.
Analysts expect the EIA report to show a supply build of 3.16 million barrels after an increase of 9.4 million barrels last week to an all-time high of 532.5 million barrels.
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