US crude drops towards $47, inventory seen hitting record again

U.S. oil futures edged down towards $47 a barrel on Tuesday as U.S. crude stocks were forecast to hit record levels for the eleventh week, but a slightly weaker dollar curbed losses.

Crude future prices spiked on the first day of trading this week despite comments by Saudi Arabia's oil minister on global supply levels one day earlier. Speaking at a conference in Riyadh, Saudi oil minister Ali al-Naimi denied that there was a "conspiracy theory" behind Opec's decision in November to keep oil output unchanged.

Elsewhere, Schlumberger Ltd. CEO Paal Kibsgaard said on Monday that he expects oil production in North America to continue to grow for the remainder of the year, before falling in 2016. In spite of steady reductions in rig counts, oil is being pumped in the United States at its fastest rate in more than 30 years. In turn, the rapid increase in U.S. shale production has allowed oil providers to cut spending on oil exploration internationally, he added.

Spending cuts already announced by producers - to the tune of 25 to 60 percent - have dropped the rig count by 45 percent since late 2014, and output will soon decline or flatten out so prices can recover, said Schlumberger Chief Executive Paal Kibsgaard.