LONDON—Oil prices were a touch softer a day after rising sharply amid speculation that politicians were preparing to take action to contain the euro-zone debt crisis.
Investors were unwilling to push prices higher without signs of concrete agreement.
"We're seeing a little bit of a counter-reaction to the strong run-up we saw over the last couple of days," said Ole Hansen, manager of the futures and fixed income trading desk at Saxo Bank. "It's been rumor-driven and now we need to see some facts," he added.
Ahead of the New York day, the front-month November Brent contract on London's ICE futures exchange was down 32 cents at $106.82 a barrel. The front-month November contract on the New York Mercantile Exchange was off 40 cents, or 0.4%, at $84.05 per barrel.
Analysts said developments in the euro zone were likely to remain the key focus Wednesday. Risks that current weakness in the market will increase are high, amid reports that division is emerging within the euro zone over the methods needed to help Greece through its funding crisis, they added.
"Without official statements to support yesterday's rumors concerning potential longer-term solutions to the euro-zone crisis, the consequent optimism stands on loose ground," SEB Commodity Research said in a note.
Crude inventory data from the U.S. Department of Energy, due at 10:30 a.m. ET, could also provide a cue for the market.
According to a Dow Jones Survey of analysts, crude oil stocks are expected to have risen 700,000 barrels last week, while gasoline stocks are seen rising by 900,000 barrels and distillate stocks, which include diesel fuel and heating oil, are expected to increase by 100,000 barrels.
However, the overall impact of the data may be muted by the market's current focus on the macro-economic picture, analysts said.
"Right now if there is a plus number, it will probably have a bigger impact than a minus number because the market is in slowdown mode at the moment," said Saxo Bank's Mr. Hansen.
