Oil turns lower, falls below $40.00/bbl

Oil prices turned sharply lower, as an early bout of demand faded during the New York session, giving way to renewed selling interest amid global supply glut concerns.

West Texas Intermediate futures were rejected from near $41.00 a barrel, and fell through the 40 mark toward its lowest level since April at $39.35 so far. WTI was last down 1.6% on the session, at $39.40/bbl.

Amid lingering oversupply concerns, investors will be watching the the American Petroleum Institute (API) will release its inventories report later on the day, while the EIA government report will be published on Wednesday and it is expected to show crude stockpiles fell by 1.9 million barrels in the week ended July 29.