Crude Oil in Red Ahead of Inventory Data

Crude futures posted losses on Wednesday as prices of the commodity continued their decline due to supply, slowing demand, a stronger US dollar and a weak inflationary outlook.

WTI futures gave up 1.36% to $50.17 per barrel, while futures for Brent were trading with a 1.84% loss at $56.56 per barrel.

Later today commodity investors will be cautiously watching the government's Energy Information Administration data that are expected to show a decline in US stockpiles by 1.7 million barrels for the week ended July 17.

The strength of the US dollar is also adding pressure to oil prices. While on Wednesday the greenback took a breather, the currency is still at the multi-year highs against most of its major peers. The prospect of the Federal Reserve's interest-rate hike is likely to increase the pressure on commodity prices.

OPEC said in its latest report that global supply and demand trend in 2015 will be stronger than previously expected. On the contrary, the International Energy Agency (IEA) warned a few days ago that global demand will slow in 2016 and the downward spiral in oil prices may resume.