WTI oil extends decline, breaks below $65.00 mark

WTI crude oil fell for the second consecutive session on Tuesday and slipped farther below the $65.00/barrel mark.

A jump in the number of rigs drilling for oil in the US, as revealed by Baker Hughes report on Friday, now seems to be fueling concerns of a rise in domestic production. 

Higher oil prices have been motivating the US shale producers to increase production and could be seen as one of the key factors dragging the black gold away from more-than three-year highs set last week. 

Adding to this, a goodish pickup in the US Dollar demand further dented demand for dollar-denominated commodities and was seen collaborating to the commodity's ongoing corrective slide. 

Market participants will now be looking ahead of the latest EIA report on Wednesday, which will offer a fresh view on the US crude output/supplies and eventually provide some fresh directional impetus. Nevertheless, the commodity still remains on track for the fifth consecutive monthly gains in January.