Oil prices declined on Tuesday, giving up some of the significant gains of the earlier two sessions, due to market caution ahead of the April U.S. inflation data, which will be crucial for the Federal Reserve's next interest rate decision.

Brent crude slipped 0.7% at $76.47 while US West Texas Intermediate crude dropped 0.7%, to trade at $72.66.

The two main gauges had surged over 2% during the earlier trading session.

In anticipation of the inflation report, the market is cautious today. Volumes are low as a result of the substantial decline in net long positions over the past two weeks and the large number of traders who have already left the market.

The April consumer price index (CPI) data for the United States is due on Wednesday.

Despite last week's dramatic decline in oil markets, prices rebounded on Friday and Monday as concerns about a recession in the world's largest oil user, the United States, subsided and some traders believed that crude's three-week decline on demand concerns was exaggerated.