NEW YORK (Reuters) - Oil prices fell 1 percent on Tuesday, with U.S. crude breaking below $50 per barrel for a second straight day ahead of weekly data that could show a build in domestic inventories.
A rallying dollar and falling share prices on Wall Street weighed further on crude oil futures.
Analysts said verbal jockeying among the Organization of the Petroleum Exporting Countries (OPEC) created uncertainty about potential output cuts at its meeting next month, noting that a particular worry was Iraq's exclusion from the plan.
Brent crude futures were down 78 cents, or 1.5 percent, at $50.68 a barrel by 11:04 a.m. EDT (1504 GMT).
U.S. West Texas Intermediate (WTI) crude futures fell 65 cents, or 1.3 percent, to $49.87.
Trade group American Petroleum Institute will issue at 4:30 4:30 p.m. EDT (2030 GMT) a weekly report of crude stockpiles and other oil supply-demand data, ahead of an official report by the U.S. government's Energy Information Administration on Wednesday.
Analysts polled by Reuters expected the data would show crude stocks rose 800,000 barrels last week, after a drop of more than 5 million barrels in the week to Oct. 14. [EIA/S]
"The sentiment is it's a bit more negative," said Scott Shelton, energy futures broker with ICAP in Durham, North Carolina. "There are some expectations that we can see a crude build."
The dollar rose to its highest level in nearly nine months against a basket of currencies, making greenback-denominated commodities, including crude, less affordable to holders of the euro and other currencies. The S&P 50 index for U.S. equity prices, a proxy for business confidence, fell 0.4 percent, the most in a week.
"The dollar moving higher historically is obviously a negative factor," said Kyle Cooper, analyst at ION Energy in Houston.
Before this week, oil prices had risen nearly 13 percent in three previous weeks since OPEC announced its first planned output cut in eight years to shore up crude prices that have more than halved from 2014 highs above $100 a barrel.
OPEC hopes to remove about 700,000 bpd from an estimated global supply of 1.0-1.5 million bpd. Details of how much each member should cut have been left to the cartel's meeting in Vienna on Nov. 30.
(Additional reporting by Sabina Zawadzki in LONDON and Henning Gloystein and Keith Wallis in SINGAPORE; Editing by David Goodman and David Gregorio)