Brent crude droppped by 14 cents to $121.52 a barrel, as weak Chinese manufacturing data weighed on prices and worries resurfaced over the euro zone debt crisis.
China's manufacturing sector in February contracted for a fourth consecutive month, as new export orders dropped sharply in wake of fresh financial fears in the euro zone.
US crude for April delivery gained 7 cents to $106.32 a barrel due to supply concerns from Iran, as tightening US sanctions make it tough for buyers to continue business with OPEC's second largest producer, reports Reuters.
Experts predict that high fuel prices may threaten demand.
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