US And Brent Oil Down On Profit-Taking, Strong Dollar

The American Petroleum Institute will release its inventory data at 4:35 p.m. EDT (2035 GMT) on Tuesday, followed by data from the U.S. Energy Information Administration on Wednesday.

China's central bank on Monday announced a package to relax policy in weaker areas of the economy including farming and small- and medium-sized companies, an action that was expected to promote growth and potentially bolster fuel demand.

The oil market was on alert for any surprises from the Organization of the Petroleum Exporting Countries (OPEC), which meets in Vienna on Wednesday to decide oil output targets.

The cartel, which pumps a third of the world's oil, has said it is happy with global oil prices and is expected to maintain its production target at 30 million bpd.

"We're starting to see global demand pick up a pace and get stronger," said Carl Larry, chief executive of consultancy Oil Outlooks in Houston. "My expectation is that the big talk tomorrow will be about spare capacity."

United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui said on Tuesday that oil prices are at a suitable level for OPEC members and the group sees no shortage of supply, "Oil prices have been steady over the past period and at a comfortable level for all members."

Libyan Oil Minister Omar Shakmak agreed, saying an oil price close to $110 a barrel is good for the oil market. "It's for the benefit of producers and customers alike."