Oil prices extend loss amid ample supplies

Oil prices continued to drop Tuesday as market expected U.S. crude inventories to increase.

U.S. crude inventories probably increased 700,000 barrels to 386.2 million barrels in the week ending Jan. 2, according to the Bloomberg survey ahead of the release of the Energy Information Administration (EIA)'s report Wednesday.

U.S. output climbed to 9.13 million barrels a day through Dec. 26, the highest level since 1983, according to the EIA.

What's more, there was no sign that the Organization of Petroleum Exporting Countries (OPEC) would cut production in response to the slump.

Iraqi Oil Ministry spokesman Asim Jihad said Sunday that the country planned to expand crude exports to 3.3 million barrels a day this month. Iraq exported 2.94 million barrels a day in December, the highest number since the 1980s.

OPEC's production slid by 122,000 barrels a day in November to 30.24 million last month, said Bloomberg survey.

Crude prices have already given up more than 50 percent since their latest peak in June 2014 on concerns of global supply glut and lackluster demand.

Light, sweet crude for February delivery lost 2.11 U.S. dollars to settle at 47.93 U.S. dollars a barrel on the New York Mercantile Exchange,while Brent crude for February delivery decreased 2.01 dollars to close at 51.1 dollars a barrel.