Oil hovered around USD 71 a barrel on Tuesday as concerns about the euro zone crisis subdued optimism over US demand, ahead of data expected to show a fall in crude stocks in the world's largest fuel user. European stock markets fell on Tuesday as worries about debt problems in Hungary added to jitters about fiscal health in European economies, which could curb future fuel demand. Front-month US crude , down 17% from a 19-month high above USD 87 in early May, dipped 18 cents to USD 71.26 by 1048 GMT. ICE Brent fell 48 cents to USD 71.64. US crude inventories were expected to have fallen for the second straight week as import volumes declined, a Reuters poll of analysts said ahead of weekly oil stocks reports this week. Industry group the American Petroleum Institute will publish inventory figures on Tuesday at 2030 GMT, while the more closely watched government statistics from the US Energy Information Administration will follow on Wednesday at 1430 GMT. "The stock data will have a significant impact as it will be the first giving indications of the driving season. The shape of the US gasoline demand will be really important," said Christophe Barret, oil analyst at Credit Agricole. Oil fell below USD 65 last month when the June contract expired but futures have since recovered with investors seeming happy to buy into any dip, keeping prices in a USD 70-USD 75 range.

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