Supply side fundamentals appear to be leading the oil market in the early stages of this week, after Monday saw crude oil futures continue to be weighed down by the prospect of rising stockpiles in the US.

Overnight in Asia, front month futures for West Texas Intermediary (WTI) pushed lower to trade below $68, although European trading has seen slightly more support, with oil recovering into positive territory. The October WTI contract approached $69.50 at mid-day.

With speculators generally ‘net long’ in the oil market, some analysts feel that uncertainties over the supply picture may lead to long liquidations and profit taking in oil futures. Combined with American refineries cutting production to address slowing consumption at the end of US driving season, questions may remain over oil trader’s current support around $68 a barrel.

This evening the first of this weeks inventory reports are due from the API (American Petroleum Institute) with the US Department of Energy report due for release on Wednesday afternoon.