Oil prices remained near two-month lows from the previous trading session on Tuesday as financial traders lost confidence in a recent price rally, switching positions in anticipation of lower prices.

 International Brent crude oil futures were trading at USD 46.13 per barrel at 0027 GMT, down 12 cents from their last close and near to the USD 45.90 two-month lows reached the previous day. US West Texas Intermediate (WTI) crude was down 13 cents at USD 44.63 a barrel. 

Hedge funds and other money managers cut their bullish bets on crude oil by 22 million barrels over the seven days ending on July 5.

Oil prices continued their period of weakness as investors remained concerned that increasing exploration activity in the US would see US production and inventories remain high. Signs of an end to several supply disruptions and a stronger US-dollar also played their part in keeping sentiment bearish," ANZ bank said on Tuesday. 

Physical markets were also weak, with Asian oil refiners processing less crude as they grapple with margins that plunged to five-year lows after the region was flooded with supply of refined products and as slowing economic growth hits demand for fuels.