Oil prices were subdued on Tuesday after climbing over 2 percent to a three-month high on Monday amid signs of tight supplies and China stimulus optimism.
Benchmark Brent crude futures slid 0.1 percent to $82.42 a barrel, while WTI crude futures were virtually unchanged at $78.75.
The dollar index traded weak as a two-day policy meeting of the Federal Reserve gets underway later today.
Investors have priced in quarter-point hikes from the Fed and European Central Bank this week, while the Bank of Japan is expected to stick to its ultra-loose policy.
China optimism lent some support after policymakers promised steps to shore up growth in the world's second-largest economy by supporting real estate and other sectors.
The focus also remains on U.S. inventory data, with data from the American Petroleum Institute due later in the day, followed by the official numbers from the Energy Information Administration on Wednesday.
