Oil slips towards USD 50

U.S. light crude for May delivery was down 86 cents at USD 50.19 a barrel by 1125 GMT, having settled USD 1.46 lower on Monday as Wall Street tumbled. London Brent crude fell 44 cents to USD 51.80.

Crude oil prices have been closely tracking the fortunes of broader markets as investors look for clues as to when oil demand might rebound. The global recession has cut oil demand around the world, with consumption expected to be curbed for the first time since the early 1980s. Oil flow through the pipeline, which carries more than a fifth of Iraqi crude to the Turkish Mediterranean coast had resumed on Monday, a source at the Turkish pipeline operator told.

Little upside is expected from weekly U.S. inventories data due on Tuesday and Wednesday, with oil analysts predicting yet another increase in crude stocks because of high import levels and weak demand from domestic refiners. A preliminary forecast of seven analysts called for a 2.1 million barrel rise in crude stocks, which are already running at a 16-year high, according to the U.S. Energy Information Administration (EIA).