Oct 3 Reuters Oil prices slipped by around 1 in early Asian trade on Tuesday, after falling to a threeweek low in the previous session, on a stronger U.S. dollar, rising U.S. bond yields and mixed supply signals.

Brent futures for December delivery declined 99 cents, or 1.09, to 89.72 a barrel by 0549 GMT, while U.S. West Texas Intermediate crude WTI , fell 78 cents, or 0.88, to 88.04 per barrel.

Brent crude oil prices slid to around 90 a barrel as rising US yields and a stronger US dollar dominated market sentiment, ANZ analysts said in a client note.

While supply remains tight, higher interest rates means expensive storage of inventories. This could lead to further destocking of oil inventories while increasing spot availability.

Earlier on Monday, the U.S. dollar rose to a 10month high against a basket of major peers after the U.S. government avoided a partial shutdown and economic data fuelled expectations the Federal Reserve will keep rates higher for longer, which could slow economic growth.

Higher interest rates along with a stronger dollar also makes oil more expensive for holders of other currencies, which could dent oil demand.

The announcement from Turkey39;s energy minister that the country will restart operations this week on a pipeline from Iraq that has been suspended for about six months further weighed on prices.

In theory, under the terms of the OPEC deal, production outside the GCC should remain flat over Q4. However, Iraqs compliance has been…