Oil prices dipped slightly on Tuesday as the US dollar rose and investors turned their attention to upcoming inventory data.

At the end of the day, New York's main contract, light sweet crude for April delivery, settled down 38 US cents at $US81.49 a barrel.

The euro fell as low as $US1.3537 on Tuesday as investors sought the safe-haven US dollar after ratings agencies warned about deteriorating credit quality in Europe.

A stronger US unit makes US dollar-denominated oil more expensive for buyers holding other currencies, and therefore tends to dent crude demand and prices.

The US Department of Energy (DoE) will publish its latest weekly snapshot of US crude inventories on Wednesday.

In London, Brent North Sea crude for April delivery shed 20 US cents to $US80.27 a barrel.

COMEX

Gold for April delivery fell $US1.70 to settle at $US1,122.30 an ounce.

Silver for May delivery rose 6.6 US cents to settle at $US17.338 an ounce.

Copper for May delivery rose 0.01 US cent to settle at $US3.4115 per pound.