Crude oil prices declined in Europe trade as strengthening U.S. dollar and weaker-than-expected decline in U.S. crude stockpiles weighed.
Light Sweet Crude oil futures for July delivery declined 0.58 percent to $99.11 a barrel and Brent crude oil futures for July delivery declined 0.31 percent to $112.19 a barrel on the ICE futures exchange in London.
On Tuesday, the American Petroleum Institute (API) said motor fuel stockpiles fell by 0.86 million barrels last week against analysts’ expectation of 1.3 million barrels decline.
Adding to downside pressure, latest numbers from Japan, the world's third-largest oil consumer, showed that crude imports plunged 14 per cent in April from a year earlier as demand remained weak following the March 11 earthquake.
The euro declined 0.11 percent to 1.4085 against the dollar amid ongoing fears about Greece's finances and Europe's spreading debt crisis.
The US Energy Information Administration (EIA) is due to release its closely-watched crude oil inventories report for the week ended May 20 after the markets open on Wednesday.
Crude stockpiles are expected to decline by 1.5 million barrels, while gasoline inventories are expected to rise by 0.45 million barrels following 0.119 million barrels the previous week which may offset the upside movement and support from the decline in crude inventories.
Oil prices gained on Tuesday after Goldman Sachs and Morgan Stanley upgraded their forecast for oil prices. Morgan Stanley raised its 2011 Brent crude price forecast to $120 a barrel from $100 and 2012 forecast to$130 a barrel from $105.