Oil slipped on Tuesday, its fourth loss in last five sessions, as investors were cautiously watching over the key talks between Greece and its private creditors.

Investors were disappointed that talks between Greece and its private bondholders to write down the country's debt by 100 billion euros have yet to result in a final agreement as negotiations stalled over the weekend.

Meanwhile, the U.S. dollar strengthened amid the deadlock in Greece, exerting downward pressures on oil prices as a stronger dollar made the greenback-denominated commodities like oil less appealing to investors holding other currencies.

Adding to the losses, the International Monetary Fund (IMF) cut its growth forecast for Europe on Tuesday, warning the region may fall into mild recession this year, spurring fresh concerns about demand.

Investors also acted cautiously before the government's inventories report, which is due out on Wednesday. Analysts were expecting a build in both crude and gasoline stockpiles.

As of Tuesday's close, light, sweet crude for March delivery fell 63 cents, or 0.6 percent to settle at 98.95 dollars a barrel on the New York Mercantile Exchange.

In London, Brent crude for March delivery also dipped and last traded around 110.2 dollars a barrel.

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