U. S. crude oil losses dropped further on Tuesday and settled at $70.47 a barrel after inventory data from the American Petroleum Institute showed that crude stocks fell less than expected last week.

New York Mercantile Exchange natural gas futures, pressured by profit taking after Monday's 8 percent spike, ended lower on Tuesday, but firmer cash prices in the face of spreading heat helped limit the pullback.

The API said crude stocks fell 1.3 million barrels to 356.6 million barrels last week, gasoline stocks rose 2.1 million barrels to 207.7 million barrels and distillate supplies added 881,000 barrels to 151.5 million barrels. The U. S. Energy Information Administration will release its data on Wednesday.

The National Weather Service eight- to 14-day outlook on Monday called for above normal temperatures for the central third of the nation, with seasonal or below seasonal readings expected in the East and West.

Today we have inventory data release from Energy Information Administration. Inventory report is expected to be bullish and that may trigger an upside in crude prices. We recommend going long in crude at dips. Natural Gas also looks good for the day and one can buy at dips.