US crude dipped to $110.73 a barrel as a result of the sharp rise in US crude oil stocks last week.

US crude fell by 32¢ to stand at $110.73 a barrel, while Brent crude for June shed 18¢ to $122.27 a barrel, reports Reuters.

The American Petroleum Institute said that US crude inventories increased by 3.2 million barrels for the week ending 29 April, while crude imports fell by one million barrels per day to 8.94 million bpd.

China plans to tighten its monetary policy to control inflation, which may lead to decreased oil demand in the nation.