Oil prices fall on oversupply concerns

Oil prices fell on Tuesday on worries over a global glut, while surveys showing a contraction in manufacturing activity in China and Japan also dragged on market sentiment. An expected drawdown in US crude stocks, however, put a floor under prices. Brent crude was down 5 cents at $63.29 a barrel as of 0651 GMT, after closing the previous session up 32 cents. US crude for August delivery fell 14 cents to $60.24 a barrel. The July contract, which expired on Monday, closed up 7 cents at $59.68 a barrel. Traders are now eyeing global oil supply levels for cues. But analysts expect US commercial crude oil stocks to have dropped by an average of 1.8 million barrels to around 466 million barrels last week. Industry group, the American Petroleum Institute, will release its data on US stocks on Tuesday at 2030 GMT, while the US Department of Energy's Energy Information Administration will publish its data on Wednesday at 1430 GMT, according to Reuters.