Commodities: Crude futures tend lower ahead of much-watched API data

At 15:07 BST, Nymex-priced West Texas Intermediate crude was down 0.35% to $49.06 a barrel. Intercontinental Exchange-traded Brent was down 0.1% to $51.55 a barrel.

"Oil markets may be destined for further punishment as the persistent oversupply woes inhibit investor attraction towards the commodity," said FXTM research analyst Lukman Otunuga.

He said although OPEC had maintained its optimism over the supply cuts stabilising the saturated oil markets, the big elephant in the room, known as US Shale, continued to obstruct the cartel's valiant efforts to trim the global glut.

"With sentiment towards oil bearish amid the oversupply concerns, a further downside may be expected with bears eyeing $48 (a barrel)."

Otunuga opined that, from a technical standpoint, previous support about $50 a barrel could transform into a dynamic resistance that provoked a fall towards $49 and $48 respectively.

Michael Hewson, chief market analyst at CMC Markets UK, said crude oil prices had continued to come under pressure ahead of weekly inventory data.

"The prospect of a continued rise in US rig counts offsets the prospect that OPEC and non-OPEC members will agree to extend the output freeze when they meet in just over a months' time," said Hewson.

"The return of Nigerian output coming back on line isn't helping to support prices either."

Mike van Dulken, an analyst at Accendo Markets, noted earlier on Tuesday that a lack of OPEC production cut extension rhetoric on Monday resulted in a sixth straight session of declines.

Brent crude was below $52 for the first time since 29 March, while the US benchmark failed to retain a $50 handle.

"Should tonight's API inventory data confirm rising US production levels, both benchmarks could face renewed bearish headwinds," said van Dulken in a note.

Meanwhile, on Comex, gold was down 0.65% to $1269.20 an ounce. Silver fell 1.13% to $17.73 an ounce, and copper rose 0.68% to 258.28 cents a pound.

Van Dulken observed gold's decline came as risk appetite continued to build in the market following the well-received first round outcome to France's presidential election.

"After starting the week sharply lower, gold has since begun trading in a tight $1268-1278 range, unable to show either bullish or bearish bias as investors await the next driver for the precious metal," the analyst said.

Hewson was another who observed that gold prices had continued to slip in the wake of this week's more benign risk environment.

On London Metals Exchange, three-month industrial metals were mostly ahead. Zinc rose 0.77%, aluminum added 0.65% and copper firmed 0.57%. Tin, however, fell 0.51%.