Oil climbs marginally on expectations of waning US oil inventories and that demand in developing markets remains sound.

A barrel of European reference oil Brent trades for USD 84.70 on Tuesday morning, up from USD 84.46 on Wednesday afternoon before the holidays. Simultaneously, US West Texas Intermediate goes for USD 80.32 against USD 80.12 previously.

Data on US inventories lands on Tuesday afternoon. According to Reuters, several analyst expect drops of upwards of 1.3 million crude barrels.

India shows signs of strong demand after gasoline consumption in March took a year-on-year 5% spike. The country is top destination for Russian oil flows, writes Reuters.

The US dollar rose Monday and Tuesday on expectations of further interest hikes in the US. The strong dollar increases oil prices for holders of foreign currency, which in turn lowers oil demand. 

A preeminent US inflation report could help investors gauge the near-term trajectory for interest rates.