Brent crude futures hovered above $107 a barrel as investors looked to a Federal Reserve meeting for clues on the outlook for the US monetary stimulus programme that has bolstered demand in the world’s No.1 oil consumer.
Investors also avoided taking big positions ahead of key economic data this week including US payroll numbers and manufacturing from China, the world’s second largest oil consumer.
Brent crude futures had slipped 15 cents to $107.30 a barrel by 0625 GMT, after falling 0.8 percent last week.
US crude futures fell 21 cents to $104.34, pressured by a recovery in the US dollar. The North Sea benchmark’s premium over its US counterpart widened to $2.96.
“Oil prices are pretty stable but there’s quite a lot potentially happening this week and I think traders are prepared to wait for the data to start to come,” said Ric Spooner, chief market analyst at CMC Markets.
“The market is kind of level but the risk will be to the downside.”
The US central bank is expected to issue a statement after its two-day meeting ends on Wednesday.
