--Crude ends lower after FOMC minutes --Fed policy makers suggest no easing on horizon --Dollar rallies sharply (Adds API data in 12th paragraph.) By Dan Strumpf Of DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- Oil futures finished lower Tuesday after the Federal Reserve released minutes from a recent meeting that suggested little enthusiasm for additional stimulus measures. The minutes from the March 13 meeting of the central bank's policy-making committee didn't show willingness for new bond-buying or other new programs. Such programs are aimed at bolstering the economy and also tend to weaken the U.S. dollar. "The last time the Fed spoke people were looking for more signs that easing was coming," said Gene McGillian, analyst at Tradition Energy in Stamford, Conn. "Without signs that we're going to continue to ease, the economic uncertainty is going to pressure prices lower." Light, sweet crude for May delivery settled $1.22, or 1.2%, lower at $104.01 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled down 57 cents, or 0.5%, at $124.86 a barrel. Futures began the day slightly lower, then sold off sharply after the central bank released its minutes at 2 p.m. EDT. Fed officials agreed that the U.S. economic recovery had strengthened modestly and did not indicate enthusiasm for buying more assets anytime soon, according to the minutes. The U.S. dollar rose sharply following the news after spending most of the day nearly unchanged. The ICE Dollar Index, which tracks the greenback against a basket of foreign currencies, recently rose 0.7% to 79.438. A stronger dollar typically erodes oil prices by making the dollar-denominated commodity more expensive for holders of other currencies. Tuesday's decline reversed much of the rally that prices saw on Monday. Futures have been giving back ground over the last week, amid discussions among developing nations over a possible release of emergency oil reserves, lack of fresh tensions with Iran and assurances from Saudi Arabia that it is raising output. Over the weekend, U.S. Secretary of State Hillary Clinton said world powers were set to meet with Iranian negotiators on April 13-14 in Istanbul to discuss the country's nuclear program--a signal that a diplomatic solution to the standoff remains a possibility. On Wednesday, traders will shift their attention to the Department of Energy's weekly report on U.S. oil inventories in search of guidance on supply and demand in the world's biggest oil consumer. Analysts say crude-oil inventories during the week ended March 30 rose 1.9 million barrels, on average, according to a Dow Jones Newswires survey of analysts. Gasoline stockpiles are expected to have dropped 1.4 million barrels, while distillate inventories, including heating oil and diesel, are seen falling 400,000 barrels, according to analysts. The American Petroleum Institute, an industry group, said its own survey released late Tuesday found oil inventories last week surged 7.8 million barrels. Gasoline stocks fell 4.5 million barrels, while distillate stocks fell 1.4 million barrels. The DOE's report is due at 10:30 a.m. EDT Wednesday. Front-month May reformulated gasoline blendstock, or RBOB, settled 1.32 cents, or 0.4%, higher at $3.3954 a gallon. May heating oil settled 2.21 cents, or 0.7%, lower at $3.2275 a gallon. More information on settlements and highs and lows for futures on Nymex and ICE platforms can be found by searching for the following headlines:

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