Global oil prices fell Tuesday as dealers booked profits from the prior gains and awaited the US stockpiles report, expected to show yet another increase in supplies.

Global oil prices fell Tuesday as dealers booked profits from the prior gains and awaited the US stockpiles report, expected to show yet another increase in supplies.

New York's main contract, West Texas Intermediate (WTI) for delivery in December, fell 48 cents, closing at $98.20 a barrel and snapping a three-day winning streak.

Brent North Sea crude for December settled at $109.01 a barrel, down 60 cents from Monday's close.

"I believe there was some profit taking after the rally on Monday -- reaction to the news in Libya was exaggerated," said David Bouckhout of TD Securities.

Oil prices rose Monday as traders kept an eye on new labor unrest in Libya that threatened oil production by the OPEC member. WTI gained 83 cents a barrel and Brent soared $2.68.

After negotiations led by the oil ministry, the protesters promised to lift their blockades of oil production, said a spokesman for Libya's National Oil Corporation.

The oil market was anticipating a weak report on commercial crude and products stockpiles from the Department of Energy, a weekly indicator of energy demand in the world's largest economy.

"US traders are also bracing for weekly inventory data expected to show a further build in crude stocks, but lower product inventories amid ongoing seasonal refinery maintenance," said Tim Evans of Citi Futures.

Bouckhout said the US report was "not expected to be bullish."