Brent crude lost 11 cents, at $109.70 a barrel, at 0631 GMT as weak demand in the global economy subdued rising tensions surrounding Iran.
November Brent futures stood at a high of $110.20 earlier in the session, while US crude futures gained six cents to hit $91.99 a barrel.
The US Government tightened its sanctions against Iran as its president Mahmoud Ahmadinejad raised his stand for a strike against Israel, which could affect oil prices in the region.
New sanctions have been levied on foreign banks dealing with Islamic Revolutionary Guard Corps, which has been officially linked to Iran’s state oil company.
Unavailability of European insurance for oil shipments is deterring buyers of oil from Iran, reports Reuters.
Stimulus measures announced earlier by central banks in the US, Europe and Japan may not boost growth in the economy, according to investors who are awaiting inventory data from the American Petroleum Institute, while the Energy Information Administration will release its data tomorrow.
Image: Iran President Mahmoud Ahmadinejad. Photo courtesy of: Sinaf7798n.