Oil falls after IEA report

Oil fell on Tuesday after a series of gloomy forecasts for demand growth and stock availability. The International Energy Agency (IEA) says the sharp slowdown in global oil demand, coupled with global inventories, means the commodity market will be oversaturated for at least the first six months of 2017.

This perspective differs from the agency's forecast a month ago, when it saw supply and demand as a whole would be in balance for the remainder of this year, anticipating a precipitous drop in inventories.

Upbeat Chinese data on industrial production growth in August failed to lift oil prices as the market remained in profit-taking mode, traders say. China's industrial production grew at the fastest pace in five months, thanks to higher government spending, loans and a boom in the real estate market.

All eyes will now turn to the weekly US oil inventory statistics to see if the drop in oil inventories was huge in the last week. However, experts predict that US commercial crude oil inventories rose last week.