World oil prices dropped for the first time this month mainly on expectations of increase in US stockpiles and also on a strong dollar.
Light sweet crude for December delivery was seen trading at $86.78 a barrel at 12.00 noon Singapore time while Brent crude was at $88.35 a barrel in London.
Analysts said the black gold is likely to extend losses during the day on forecasts of higher U.S. crude inventories and a strengthening dollar that could cut the appeal of commodities.
Analysts also said oil was supported by a strong dollar, boosted by concerns about euro zone debt.
The greenback traded at $1.3878 a euro, after increasing 0.8 percent to $1.3920 on Monday. The euro was near a one-week low against the U.S. currency amid speculation that European nations will struggle to raise funds reduced demand for the region s assets.
American Petroleum Institute will release its data later today while the US Energy Department will release the official data on Wednesday.
On Monday, oil prices reached two-year highs on Monday before profit-taking and a strengthening dollar pared gains.
New York's main contract, light sweet crude for delivery in December, rose 21 cents to $87.06 a barrel after reaching $87.49 - the highest point since late 2008.
In London, Brent North Sea crude for December rose 35 cents to $88.46 a barrel.
Oil prices have been boosted in recent days by the US Federal Reserve's decision to inject an additional $600 billion into the market to help stimulate the world's biggest economy.
Light sweet crude for December delivery was seen trading at $86.78 a barrel at 12.00 noon Singapore time while Brent crude was at $88.35 a barrel in London.
Analysts said the black gold is likely to extend losses during the day on forecasts of higher U.S. crude inventories and a strengthening dollar that could cut the appeal of commodities.
Analysts also said oil was supported by a strong dollar, boosted by concerns about euro zone debt.
The greenback traded at $1.3878 a euro, after increasing 0.8 percent to $1.3920 on Monday. The euro was near a one-week low against the U.S. currency amid speculation that European nations will struggle to raise funds reduced demand for the region s assets.
American Petroleum Institute will release its data later today while the US Energy Department will release the official data on Wednesday.
On Monday, oil prices reached two-year highs on Monday before profit-taking and a strengthening dollar pared gains.
New York's main contract, light sweet crude for delivery in December, rose 21 cents to $87.06 a barrel after reaching $87.49 - the highest point since late 2008.
In London, Brent North Sea crude for December rose 35 cents to $88.46 a barrel.
Oil prices have been boosted in recent days by the US Federal Reserve's decision to inject an additional $600 billion into the market to help stimulate the world's biggest economy.
