Expectations of dwindling production wasn't enough to offset concerns about oversupply, pushing crude oil prices deeper in the red in early Tuesday trading.

Crude oil prices followed Monday's steep dive with another round of declines showing in early Tuesday trading. Brent crude oil sold for $46.72 per barrel at the start of trading in New York, down about 1.7 percent from the previous day. West Texas Intermediate, the U.S. benchmark price for crude oil, was off 2.6 percent from the previous day to trade at $43.98 per barrel at the opening bell on Wall St.

Reports later this week from the American Petroleum Institute and U.S. Energy Information Administration should indicate whether crude oil stocks continue to build in the U.S. economy. Demand has yet to take up the supply of crude oil in the market even though consumers are benefitting from the decline in oil prices.

The U.S. Federal Reserve said in mid-October inflation in the United States was held down by lower crude oil prices.

Ric Spooner, chief market analyst for CMC Markets in Australia, wrote in a Tuesday brief there are "modest green shoots" for oil markets in the way of reports showing lower prices are pushing production forecasts lower.

The Organization of Petroleum Exporting Countries said in its market report for October that U.S. crude oil production could fall by as much as 100,000 barrels per day next year. Spooner, however, said it's not enough to offset oversupply concerns.

"With Iranian production likely to come back onto the market, it could be well into 2017 before the market moves back to balance between supply and demand," he said. "If this remains the case, rallies are likely to be capped and oil will remain vulnerable to downside pressure for a while yet."