Tuesday saw the continuation of oil's two-day decline as positive Chinese economic data failed to shift attention away from the possibility of a hike in U.S. interest rates and broader concerns about the future for growth.

The Kurdistan Regional Government and the federal government of Iraq put pressure on crude to resume northern oil exports from the Turkish port of Ceyhan after they were suspended last month.

Brent crude slumped by 0.4% to $84.43 per barrel while US WTI dropped 0.5% to $80.46.

Data indicating that China's GDP expanded by a faster-than-anticipated 4.5% in the first quarter and that oil refinery throughput increased to record levels in March helped oil find support earlier in the session.

The likelihood of a further rise in U.S. interest rates, which has been bolstering the value of the dollar, continued to dampen morale. Traders anticipate a 25-basis point rate increase from the US Federal Reserve at its meeting in May.

The US inventories will be in the spotlight on Tuesday. Analysts predict a 2.5-million-barrel drop in U.S. crude stocks as well as drops in gasoline and distillates.