Oil falls as dollar rallies again; storm fears limit downside

By Barani Krishnan

NEW YORK (Reuters) - Oil prices fell for a second day in a row on Tuesday as the dollar rose on stronger U.S. economic data, but the downside was limited by production suspensions in the U.S. Gulf due to an expected tropical storm.

Brent crude futures were down 31 cents, or 0.6 percent, at $48.96 per barrel by 10:27 a.m. EDT (1427 GMT).

U.S. West Texas Intermediate (WTI) crude slid 20 cents, or 0.4 percent, to $46.78.

Both Brent and WTI fell more than 1 percent on Monday on a stronger dollar and on renewed concerns about an oil glut.

The dollar index, which measures the greenback against a basket of currencies, hit session highs after the U.S. Consumer Expectations Index hit its highest since October. A stronger dollar tends to make greenback-denominated commodities such as oil costlier for holders of euro and other currencies.

Energy operators in the U.S. Gulf of Mexico have shut output equal to 168,334 barrels per day (bpd) of oil and 190 million cubic feet per day of natural gas as a precaution against a tropical storm, the U.S. Bureau of Safety and Environmental Enforcement said on Monday.

Shell said it had shut production at its Coulomb field in the region after BP shut its Na Kika platform ahead of Tropical Depression Nine.

(Additional reporting by Ahmad Ghaddar in LONDON and Roslan Khasawneh in SINGAPORE; Editing by Jon Boyle and Marguerita Choy)