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Crude prices settled mixed on Tue as expectations for a U.S. inventory drop and a smaller Fed rate hike for Feb faced off with negative connotations linked to a likely OPEC+ decision to keep production steady.

A weaker dollar and an uptick in Nov demand for U.S. crude and petroleum products, reported belatedly by the EIA, also bolstered prices.

Separately, the EIA is expected to report on Wed the first weekly drawdown in U.S. crude stockpiles in 5 weeks, some analysts said, despite an industry-wide consensus for another build during the week ended Jan. 27, although that could be a modest rise.

"There are some things going on that can be perceived as somewhat bullish in the immediate term for oil, which includes the first possible crude draw in 5 weeks and the widely-expected Fed rate hike of 25 basis points for Feb, versus the previous 50-bp hike in Dec" said John Kilduff of Again Capital.

"That said, there will be just as many negatives for oil if OPEC+ leaves production unchanged at its meeting tomorrow, and India and China continue to leverage the G7 price cap on Russian oil to keep a lid on physical pricing in the international market," Kilduff said.

OPEC+ is slated to leave oil production unchanged when it meets on Wed.

Brent crude for Mar delivery settled down 0.5% at USD84.49 while WTI crude for Mar settled up 1.3% at USD78.87.