Oil prices fell early on Tuesday as Canadian wildfires that have knocked out over 1 million barrels worth of daily crude capacity moved away from production facilities, while brimming inventories and a strong U.S. dollar weighed on markets.

U.S. crude futures were trading at $43.09 per barrel at 0040 GMT, down 35 cents from their last settlement.

Brent crude was down 26 cents at $43.37 a barrel.

U.S. crude inventories seen to have built by 500,000 barrels to new record highs above 543 million barrels.

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