The price of Brent crude oil steadied below $86 a barrel on Tuesday following a drop in the US dollar, which offset issues of weak demand and ample supply.

Reuters reported that Brent crude for December decreased 20 cents to $85.63 a barrel, while US December crude was down ten cents at $80.90 a barrel.

The US services sector increased at its slowest pace in October since April. Chinese data showed profits in the industrial sector had slipped in the first nine months of this year.

"Reuters reported that Brent crude for December decreased 20 cents to $85.63 a barrel."

Major investment banks have cut their forecasts for Brent following sharp declines over the last several weeks.

Barclays revised its forecast for Brent in 2015 to $93 a barrel, down from $96, and for WTI to $85 from $89.

Goldman Sachs has also slashed its prediction for Brent to $85 a barrel, down from $100, with the US crude forecast being lowered to $75 from $90.

Analysts from other banks have also cut forecasts for 2014 and 2015 crude oil prices because of worldwide growth worries, a strengthening dollar and abundant supplies.

A preliminary Reuters survey has found that analysts saw commercial crude stocks grow by 3.5 million barrels last week in the US, while stocks of distillate and gasoline declined.

The American Petroleum Institute (API) is scheduled to unveil its inventory report and the US Department of Energy’s Energy Information Administration (EIA) will release the official data later this week.