Crude oil contracts are on track for a third consecutive daily drop on Tuesday, as signs of recovering Middle East crude exports helped lower the risk premium in petroleum futures.

At 11:50 a.m. ET, November NYMEX WTI was down about 55cts to $88.90/bbl and December WTI was also 55cts lower to $87.65/bbl.

London-based December ICE Brent was down by around $1 to $99.30/bbl and January Brent was $1.10 lower to $96.45/bbl.

Energy traders stepped up to sell oil futures after recent shipping data showed increased tanker transit through the Strait of Hormuz and a higher volume of oil pipeline bypass.

Diesel prices also dropped about 2%, taking the lead from crude oil's decline.

November NYMEX ULSD was down 10.7cts to $4.438/gal and December ULSD was 9.8cts lower to $4.295/gal. November RBOB was off by 1.1ct to $3.235/gal and December RBOB was 1.75ct lower to $3.0545/gal.

Further losses in oil and product futures are limited, however, due to the stalemate in peace talks between the U.S. and Iran, analysts said.