Oil prices pared losses in post-settlement trade after data showed a smaller-than-expected rise in crude stocks.
Refineries cut output, while gasoline and distillate inventories decreased, data from industry group the American Petroleum Institute showed on Tuesday.
Crude inventories rose by 1.5 million barrels in the week to March 11 to 523 million, compared with analysts' expectations for an increase of 3.4 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 471,000 barrels, API said.
Gasoline stocks fell by 1.2 million barrels, compared with analysts' expectations in a Reuters poll for a 2.3 million-barrel decline.
U.S. oil had fallen in the pre-settlement session Tuesday, extending losses for a second straight day, as market participants cited technical resistance after prices ran above $40 a barrel and worry that U.S. crude stockpiles had continued to rise despite falling production.