UPDATE 6-Oil pares gains on profit taking ahead of Fed policy
* Investors await U.S. Fed meeting results on Wed
* US consumer prices rise, pointing to growing demand
* Market keeps an eye on standoff in Syria, fears growing conflict
* US commercial crude oil stocks seen down last week - poll
NEW YORK, June 18 (Reuters) - Oil prices were moderately higher on Tuesday after paring earlier gains made on positive U.S. economic data.
Traders were taking profits ahead of the Federal Reserve's release of a policy statement on Wednesday which is expected to show whether it will reduce its monetary stimulus. The program has been largely supportive of oil prices.
Brent oil was off an 11-week high made in the previous session, and U.S. crude oil had dropped from a nine-month high.
Data showing a rise in U.S. consumer prices and an overall upbeat outlook for the housing sector bolstered trading sentiment.
Global financial markets have been on edge since Fed Chairman Ben Bernanke suggested the central bank would be looking to pull back its stimulus program.
The Fed started its two-day Federal Open Market Committee policy meeting on Tuesday. Its three quantitative-easing schemes have buoyed prices of commodities as they pumped liquidity into the market and lowered the value of the dollar, making greenback-traded commodities cheaper for investors in foreign currencies.
"We're seeing profit-taking ahead of the Fed tomorrow," said Bill Baruch, senior market strategist with brokerage iiTrader in Chicago, Illinois.
"If they give a timeline that says they'll taper quicker, you'll fall back. That will keep commodities priced in dollars in check."
Brent crude oil futures for August delivery were up 17 cents at $105.64 per barrel at 11:34 a.m. EDT (1534 GMT), after trading as high as $106.24 in Tuesday's session.
Front-month U.S. crude oil futures rose 20 cents to $97.97, after trading as high as $98.49.
The oil market is also keeping an eye on a standoff over the civil war in Syria.
Although Syria is not key to global oil supply, investors are worried the civil war there could affect other countries in the Middle East and plunge the whole region into conflict.
"If anything should have an impact on the oil prices, it should be the easing of tensions in the Middle East," said Simon Wardell, analyst at Global Insight.
U.S. commercial crude oil stocks likely fell last week due to lower imports, according to a preliminary Reuters poll on Monday.
Statoil said some production fields connected to the Oseberg oil field, which in total produce nearly 120,000 barrels per day (bpd), has resumed after an outage on Monday.
Royal Dutch Shell Plc said it initiated a planned shutdown at its 600,000 bpd Motiva refinery in Port Arthur, Texas, on Friday.
New York Mercantile Exchange gasoline futures were trading 0.36 percent higher at $2.88 per gallon, after reaching a one-month high at $2.91 on Friday.