Oil prices fell slightly in Asian trade on Tuesday, hovering near three-month highs after a strong run of gains as markets digested mixed economic cues from major importer China, while strength in the dollar also weighed.

Crude prices rallied between 14% and 16% in July, with expectations of tighter supply largely underpinning markets after production cuts by major suppliers Saudi Arabia and Russia.

Signs of steady U.S. demand, coupled with growing hopes for more Chinese stimulus measures also aided prices.

But the oil rally somewhat ran out of steam in anticipation of more positive catalysts this week. A recovery in the dollar also limited gains in commodities priced in the greenback.

Brent oil futures fell 0.3% to $85.22 a barrel, while West Texas Intermediate crude futures fell 0.2% to $81.64 a barrel by 22:16 ET (02:16 GMT). Both contracts were at their highest levels since mid-April.

Oil markets were largely focused on more stimulus measures from world no.1 crude importer China. While officials promised to roll out more measures to support Chinese consumers and businesses in the coming months, they offered scant details on what these measures will entail.

Source : Investing.com