US West Texas Intermediate (WTI) crude was down 18 cents, or 0.3 per cent, at $56.68 a barrel. The contract dropped 0.7 per cent in the previous session. Brent crude futures were down 14 cents, or 0.2 per cent, at $62.04 a barrel by 0256 GMT, after falling 0.5 per cent on Monday.
The company is meeting banks pitching for roles on the deal this week, and is expected to appoint the advisers in the coming days. The IPO is a centrepiece of Saudi Arabia's economic transformation drive to attract foreign investment and diversify away from oil.
Many of the 2,000 companies operating ships in the region have ordered their vessels to transit Hormuz only during the daylight hours and at high speed. But only a handful of the companies have halted bookings.
Oil prices jumped after Saudi Energy Minister Khalid al-Falih told a conference in St Petersburg, Russia, that $60 a barrel was too low to encourage investment in the industry. Crude later pared gains.
However, the dollar's weakness against some currencies overseas and a higher opening of the domestic equity markets capped the rupee's losses, a forex dealer said. Fresh dollar demand from banks and importers weighed on the Indian currency, they added.