Oil Prices Slid a Dollar

Oil prices fell by a dollar on Tuesday amid high stock levels, which undermined the impact of an expected crude production cut by OPEC.

Crude settled down $1.01 to $58.93 per barrel, reversing a $1.37 rally on Monday.

Prices have recovered slightly from last Thursday's low of $57.22, driven by expectations the Organization of Petroleum Exporting Countries will agree to an output cut to prevent prices from sliding further.

U.S. oil has fallen from record mid-July highs above $78 a barrel, weighed down by healthy global inventory levels.

"The OPEC cut and winter fears are limiting the downside but at the same time, the upside is limited by the high crude inventories in the United States," said Tony Nunan, a risk manager with Japan's Mitsubishi Corp.

"In the short term, the market is going to find it hard to go up and equally hard to go down."