After weak Japanese industrial production data, oil prices fell in early trade on Tuesday. US West Texas Intermediate (WTI) crude futures briefly traded higher then fell 38 cents (1 percent) to $39.32 a barrel after climbing 3 percent on Monday.
Brent crude futures for September fell 32 cents (0.8 percent) to $41.53 a barrel, paring Monday's 69 cent gain. There were no early trades on the August contract, which expires on Tuesday.
Japan reported industrial output for May fell 8.4 percent in May from the previous month, compared with market forecasts for a 5.6 percent decline.
A preliminary poll showed analysts expect US crude oil stockpiles fell from record highs last week and gasoline inventories decreased for a third straight week.
