Post staging gains in the earlier session, oil prices plunged on Tuesday as investors' attention turned to the banking crisis and signs of growing demand in China.

After climbing on Monday at their quickest rate in more than four months, prices began to decline.

West Texas Intermediate U.S. crude edged down by 0.01% to $72.80 per barrel while Brent crude futures slipped to $77.93 per barrel.

As an arbitration ruling affirmed Baghdad's approval was required for the oil shipment, Turkey ceased pumping crude from Kurdistan via a pipeline, which caused prices to nudge up in the previous session.

A sign of improving Chinese demand was also likely to continue bolstering oil prices.

According to a yearly forecast released on Monday by a research division of China National Petroleum Corp, China's crude oil imports are anticipated to increase 6.2% to 540 million tonnes in 2023.

Eyes are on the inventory data scheduled to be released today by the American Petroleum Institute (API).