Mubasher: Oil prices saw deeper losses on Tuesday ahead of a key meeting of the US Fed Reserve this week.

By 3:50am GMT, Brent crude fell 51 cents, or 1.4%, to reach $48.68 per barrel.

U.S. crude futures lost 62 cents, or 1.31%, to stand at $46.79 per barrel.

On Monday, prices retreated from two-month highs due to worries about the rapidly growing Chinese fuel exports, more Iraqi and Nigerian crude shipments, and a rising count of US oil rigs.

Commodity market analysts Ahmed Karam said oil rallied over the past few sessions on speculations that OPEC and non-OPEC members will agree to freeze oil production, which drifted prices higher 20%.

Market analyst Hazem Wreykat said Oil prices are not likely to move above the previous quotes, noting that Saudi Arabia plans to increase oil production; Iraq has started pumping 70,000 barrels into Turkey daily; and Libya’s National Oil Company reopened the blockaded export terminal at Zueitina.

Moreover, China's July exports of diesel and gasoline jumped by 181.8% and 145.2% respectively compared to 1.53 million tons and 970,000 tons each for the year-ago period. 

Likewise, the British investment bank Barclays clarified the past rises have no technical grounds but anticipations of the coming producers' meeting to curb oversupply.

"Oil prices will likely experience another short-term dip in the coming weeks," the bank said.