Oil prices drop as broad market sell-off outweighs supply concerns

Oil markets lost steam on Tuesday as a deteriorating economic outlook and a surge in U.S. production outweighed expected supply cuts by the Organization of the Petroleum Exporting Countries (OPEC).

Brent crude oil futures, the international benchmark for oil prices, were at $66.43 a barrel at 0608 GMT, down 36 cents, or 0.5 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $56.97 per barrel, 23 cents, or 0.4 percent, below their last settlement.

The dips followed price increases earlier in the session.

“Upside potential has shown to be shaky as bullish movements lose steam,” said Benjamin Lu of Singapore-based brokerage Phillip Futures.

Oil prices are almost a quarter below their recent peaks in early October, weighed down by surging supply, especially from the United States.