U. S. crude oil futures fell below the $70 a barrel mark on Monday as the dollar rose broadly, global equities slipped and demand worries persisted despite signs of economic recovery. New York Mercantile Exchange natural gas futures ended lower on Monday, as a steep slide in crude, record high storage and mild U. S. weather forecasts weighed on the complex despite recent gains.

A preliminary poll ahead of weekly U. S. petroleum inventory data showed forecasts for a 1.1 million barrel drawdown in crude stocks in the week to Sept. 18. Distillate and gasoline stocks rose, the poll showed.

Oil refinery output in 16 European countries rose in August from July, data from Euroilstock showed. But output was still down 6.4 percent from levels August 2008.

Crude oil freight rates on major routes were mixed on Monday with growing ship availability and continuing weak demand curbing gains. The world's benchmark Very Large Crude Carrier (VLCC) export route from the Middle East Gulf (MEG) to Japan rose to W35.15 from W30.31 last week.

U. S Crude imports could have fallen anywhere from 200,000 barrels per day to 700,000 bpd day last week, according to an estimate.

Crude oil is expected to trade sideways today on back of risk aversion in markets. One should keep an eye on API inventory report to be released later in the day as any surprisingly big draw in crude inventory may lend support to crude prices.