June 11 Reuters Oil prices traded lower on Tuesday, as investors waited for key U.S. and China CPI data as well as the outcome of the Federal Reserve39;s policy meeting to glean a clearer picture of where inflation is heading and how that will affect fuel demand.

Brent crude futures fell 13 cents, or 0.16, to 81.50 per barrel by 0613 GMT and U.S. West Texas Intermediate crude futures slipped 7 cents, or 0.04, to 77.67.

Prices had climbed about 3 to a oneweek high on Monday, buoyed by expectations that the Northern Hemisphere summer vacation season will boost fuel demand this summer, a gain some analysts said was likely to be shortlived given the prospect of higher interest rates remained.

The release of U.S. consumer price index data for May and the conclusion of the Fed39;s twoday policy meeting are both scheduled for Wednesday.

More conviction may be needed in oil prices for a more sustained recovery with a move above the US83.00 level, given that the broader trend for oil prices still leans on the downside with a series of higher highs since April, IG market strategist Yeap Jun Rong said.

Traders were also cautious ahead of the release of macroeconomic data from China on Wednesday.

The potential adverse macro driver for oil prices will be China39;s inflation data that will be out tomorrow, said OANDA senior market analyst Kelvin Wong.

The expected consensus estimates are looking for a further slowdown in the deflationary trend of China39;s factory gate…