Oil gained over 30 cents to top $79 on Tuesday, reversing earlier losses in choppy trading that reflected dollar moves in the absence of any clear fundamental momentum to spring out of a well-established range.
Weekly inventory data from industry group the American Petroleum Institute (API), due to be published at 2130 GMT on Tuesday, followed by U.S. government statistics on Wednesday, could provide some impetus.
U.S. crude for April delivery rose 39 cents to $79.09 a barrel by 1144 GMT, while London ICE Brent added 54 cents to $77.43.
The euro edged up from a 9-1/2 month low against the dollar hit earlier on Tuesday, but remained under selling pressure due to concerns about Greece's debt problems.
"It's just chopping around. It's rangebound … it's been trading between $70-85 since October and there are some good reasons for that," said Mike Wittner, head of oil market research at SG Commodities.
Lending support are expectations for a gradual global recovery and consequent increase in oil demand combined with anticipation that OPEC will rein in output if necessary, he said, while capping any gains are high product stocks and weak refining margins.
STOCKS AND SUPPLIES
U.S. crude inventories probably rose 1.3 million barrels last week amid higher imports, a Reuters survey showed, while gasoline stockpiles may have gained 400,000 barrels.
The dollar, meanwhile, edged back against a basket of currencies to show gains of 0.11 percent, from over 0.4 percent earlier.
OPEC meets next on March 17 and ministers are already suggesting there will be no change to current output quotas.
Crude oil markets continue to be well supplied, United Arab Emirates oil minister Mohammed al-Hamli said on Tuesday.
He added that prices between $70-80 per barrel were acceptable to producers. "Oil price stability has been achieved despite weakness in the global economy and unfavourable market conditions," he added.
Top oil exporter Saudi Arabia is likely to cut the price of all types of crude heading to export because of competition from Russia's export blend and falling profit margins for fuel oil sales, traders said.
The market is still absorbing the impact since January of Russia's ESPO blend crude into the Asia-Pacific market, where Chinese, South Korean and Japanese refiners have bought the new crude. The grade competes with Saudi Arabia's main export grade, Arab Light.
