WASHINGTON (Alliance News) - Crude oil prices edged higher in early trades Tuesday, amid hopes of increased demand on the back of a stronger than expected US factory output in February. However, gains are just modest, as traders are mostly making cautious moves, looking ahead to the US Federal Reserve's decision on its bond-buying program. The Fed is expected to trim its stimulus plan by USD10 billion to USD55 billion per month on Wednesday. Meanwhile, it is widely expected that the soft sanctions on Russia following the Crimea region of Ukraine voting to join Russia will not result in supply interruption from the region. US Crude for April delivery is up USD0.24 or 0.24% at USD98.32 a barrel. Markets will be paying attention this afternoon when the American Petroleum Institute releases its US crude oil inventories figures for last week. Analysts expect a significant build in stockpiles for a second straight week. Natural Gas is down 0.30% at USD4.523 per million btu.

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