Oil prices fell for a second day on Tuesday, driven by ongoing evidence of rising U.S. crude output, while wary investors sold off stocks, bonds and commodities.
"There are so many longs in the market that they're now taking profits," said Tariq Zahir, analyst at Tyche Capital Advisors, referring to traders who have placed wagers that oil prices will keep rising. "This could just be a one-day thing before we start to see a move to the upside again."
U.S. blue-chip stocks opened under pressure, weighed down by a jump in government bond yields and an earlier rise in the dollar.
With oil's negative correlation to the dollar reaching its strongest in a month, even continued signs of robust demand for crude were not enough to ward off profit taking following last week's rise to three-year highs.