Oil prices edged lower on Tuesday as markets balanced reports of US-Iran mediation efforts against data pointing to tighter American crude stocks.
Brent futures dropped 35 cents, or 0.4%, to 88.87 dollars per barrel by 00:52 GMT. US West Texas Intermediate for September delivery held at 82.47 dollars per barrel.
A preliminary Reuters poll conducted Monday suggested that US crude and gasoline inventories likely fell last week, while distillate stocks were expected to have risen.
