Brent down ahead of GDP data
Brent futures fell more than $1 to slip below $108 (€83.52) a barrel today as investors waited for key US economic data to gauge the demand growth outlook for oil with rising supplies weighing on prices.
The world's biggest economy likely grew at a 1.9 per cent annual rate in the third quarter, but still well short of the pace economists say is needed to ensure steady recovery.
Brent has fallen more than 3 per cent this month in part on investor reluctance to lock in fresh positions ahead of US elections.
Brent crude had slipped $1.02 a barrel to $107.47 by 05.27 GMT.
The contract ended higher yesterday, after seven straight sessions of declines that marked its longest losing streak since July 2010.
US oil slipped 90 cents to $85.15, after ending up 32 cents.
"It is difficult to lock in fresh positions," said Tetsu Emori, a Tokyo-based commodities fund manager at Astmax Investment.
"Investors are awaiting election results and more data that supports a steady global economic recovery." Since climbing out of the 2007-09 recession, the US economy has faced a series of headwinds from high gasoline prices to the debt turmoil in Europe and, lately, fears of US government austerity.
It has struggled to exceed a 2 per cent growth pace and remains about 4.5 million jobs short of where it stood when the downturn started.
"There is an element of investors staying on the sidelines ahead of key data in the way prices are moving today," said Ben Le Brun, a market analyst at OptionsXpress.