-- Brent hits record high in euro, sterling terms -- All eyes on FOMC meeting -- US inventory data may pressure crude, traders say By David Bird Of U.S. crude oil futures prices were slightly weaker Tuesday, with traders awaiting the outcome of the Federal Reserve's policy board meeting for signs on interest rates. Oil shed modest gains after the dollar turned stronger against the euro, traders said. Major economic indicators out of Europe and the U.S. were on the supportive side of the market ledger, but much trading is sidelined ahead of the Federal Open Market Committee's statement due at 2:15 p.m. EDT. Jim Ritterbusch, president of Ritterbusch & Associates, said the Fed is expected to keep interest rates low, a move which is "likely to enhance oil's appeal as an asset class." In Germany, the ZEW survey for March showed the economic expectations index rose sharply to +22.3 from February's unrevised +5.4, and compared with expectations for a reading of +10.0. That is the highest reading since June 2010 and eases some concern about the economic health of the euro-zone nations. U.S. retail sales rose 1.1% in February, the fastest pace of growth in five months, and in line with economists' forecasts. Light, sweet crude oil for April delivery on the New York Mercantile Exchange was 30 cents lower, at $106.04 a barrel, in a range of $105.85 to $107.13 a barrel. ICE North Sea Brent crude for April was 15 cents higher at $125.49 a barrel, after hitting a record high in sterling and euro terms earlier in the day. Prices chopped around in a range from $125.02 to $126.22 a barrel. "We still seem to be caught between concerns about Iran and indications from whatever economic news we get," said Tom Bentz, director at BNP Paribas Prime Brokerage. U.S. weekly oil data are expected to show crude-oil stocks increased last week while refiners lifted operations, by a slim 0.2 percentage points. According to preliminary estimates, analysts expect the figures to show U.S. crude-oil inventories rose by 1.6 million barrels in the week ended March 9. The closely watched government survey from the Energy Information Administration is due at 10:30 a.m. EDT Wednesday. Gasoline stocks are expected to fall by 1.2 million barrels. All four analysts expect a decline, and estimates range from a drop of two million barrels to a decline of 500,000 barrels. Distillate stocks, comprising heating oil and diesel fuel, are expected to fall by 1.1 million barrels. All four analysts expect a decline. Forecasts range from a drop of 1.5 million barrels to a drop of 500,000 barrels. The American Petroleum Institute, an industry group, is set to release its survey for the same period at 4:30 p.m. EDT Tuesday. April reformulated gasoline blendstock futures were 0.68 cent higher, at $3.3298 a gallon, while heating oil for April delivery was 0.95 cent higher, at $3.2524 a gallon.

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