Oil fell toward $67 a barrel on Tuesday as economic uncertainty hit equity markets and added to expectation that oil demand could be slow to revive significantly.
However, oil's losses were limited by dollar weakness. A lower dollar can strengthen commodities denominated in the currency.
U.S. crude for August was down 50 cents at $67.00 by 10:42 a.m. EDT. U.S. crude for July delivery expired on Monday, settling down $2.62 at $66.93 a barrel.
London Brent crude fell 34 cents to $66.64.
The stock markets and global economic outlook pushed oil through key support levels but they now seem to be finding support at around $67 on WTI (U.S. crude) and $66 on front month Brent, said Christopher Bellew, a broker at Bache Commodities.
U.S. weekly inventory data from the American Petroleum Institute was due later on Tuesday and U.S. government oil stocks figures on Wednesday.
A Reuters poll of analysts ahead of the government inventory data forecast crude stocks fell by 1.3 million barrels last week on lower imports, while gasoline stocks and distillates, including heating oil and diesel fuel, were seen rising.
The API will release its weekly stockpile data at 4:30 a.m. EDT, while the U.S. Energy Information Administration will release its report on Wednesday at 10:30 a.m. EDT.
The Organization of the Petroleum Exporting Countries will not cut output at its meeting in September, Kuwait's oil minister said on Tuesday.
We will not cut there, but we will ask for more compliance (with agreed cuts), Kuwait's Oil Minister Sheikh Ahmad al-Abdullah al-Sabah told reporters at parliament.
OPEC and EU officials met in Vienna on Tuesday to discuss the outlook for the oil market and supplies. OPEC President Jose Botelho de Vasconcelos of Angola told a news conference at the close of the meting that the exporter group wanted an oil price of around $80 a barrel
(Editing by William Hardy)