US benchmark West Texas Intermediate (WTI) for October delivery fell USD 1.04 to USD 39.41 while Brent crude for October eased 91 cents to USD 44.55 in late-morning trade.
The minutes of the Fed's July meeting are expected to be released at 2 pm, and traders are hoping the Fed minutes will give new insight into Fed thinking on rate hikes that did not come out in the post-meeting statement.
The IIP data has been extremely meager and weak in the past many months, so it is not expected to reflect any sort of improvement this time around. The Index of Industrial Production (IIP) data is expected to be a contraction of around 1.1 percent.
One can say that the real economy turnaround is six quarters away, but the market turnaround is what we are witnessing now, BP Singh, Pramerica Mutual Fund said.
Equities have come under pressure this year due to slowing growth in China and capital outflows from emerging nations where the US Federal Reserve's stimulus tapering is taking a toll.
Spot gold had eased 0.2 percent to USD 1,221.64 an ounce by 0325 GMT. It traded in a narrow range on Tuesday slipping to USD 1,215.60 - fresh lows since early July - despite weakness in equities and the US dollar.
After closing to almost a three-year high on the back of strong earnings from the technology sector and foreign liquidity, will the market maintain the trend on Monday?
The China HSBC flash purchasing managers index (PMI) fell to an 11-month low of 47.7 in July from a June final reading of 48.2, as the world's second largest economy continues to reel from deleveraging and tight monetary policy.
Senior economist at ICRA, Aditi Nayar told CNBC-TV18 that the IIP numbers were weaker than expected. She does not see a rate cut from the RBI happening in the near future.
China`s official Purchasing Managers` Index (PMI) for April dipped to 50.6 from a March figure of 50.9, according to data from the National Bureau of Statistics, missing a Reuters forecast of 51.0.
US stocks extended gains on Friday, with the Dow industrials trading above 14,000 for the first time since October 2007, as jobs and manufacturing data pointed to a stronger US economy.
US stocks were little changed on Tuesday as investors fretted about Washington's ability to avoid a year-end budget crisis, but a Greek plan to buy back debt pushed the euro near a seven-week high.
Oil prices fell in Asia today in thin trade following the US Thanksgiving holiday, with a truce in Gaza and gloomy eurozone manufacturing data weighing on markets, analysts said.
Oil prices rose on Tuesday, boosted by better-than-expected manufacturing data in Germany and China and by uncertainty in Libya where government loyalists staged a fight back.