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Crude oil futures pared early gains and settled slightly weak on Tuesday as worries about near term energy demand outweighed possible shortage in supply due to geopolitical reasons and output cuts by OPEC and its allies.

Traders were a bit cautious as they looked ahead to weekly crude stockpiles reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). While the API will release its report later today, the EIA is scheduled to release its data Wednesday morning.

West Texas Intermediate Crude oil futures ended down $0.11, at $62.99 a barrel.

Brent crude oil fturues were up marginally at $72.03 a barrel around mid afternoon.

On Monday, WTI crude oil futures ended up $0.34, or 0.54%, at $63.10 a barrel.

On Monday, Saudi Arabia said it would maintain its squeeze on production right till till the end of the year, even as Russia said that it would take a call about output cuts based on market conditions.

Meanwhile, tensions in the Middle East have escalated after Yemen's Iranian-allied Houthi rebels reportedly said they attacked a Saudi airport and military base with a bomb-laden drone.

The attack happened after Iran announced that it has quadrupled its uranium-enrichment production capacity, a year after the U.S. withdrew from its nuclear deal with world powers.