LONDON: Brent crude oil fell below $105 per barrel on Tuesday, after the risk premium caused by an Israeli air strike on Syria faded.
The benchmark hit its highest in nearly a month above $105 in the previous session on fears of supply disruption following Israeli air strikes on Syria close to Damascus.
Israel played down the air strikes, saying the raids were not aimed at influencing its neighbour's civil war, but only at stopping Iranian missiles reaching Lebanese Hezbollah militants.
Brent crude dropped 66 cents to $104.80 a barrel by 0832 GMT, after settling up at $105.46, its highest finish since April 10 on Monday.
Brent has rebounded more than $6 a barrel since falling below $99 last Wednesday. US oil fell 71 cents to $95.45, after ending 55 cents higher.
Analysts expect crude oil could rise further on renewed optimism about the health of the global economy, thanks in part to supportive measures from central banks.
The Reserve Bank of Australia cut its cash rate by 25 basis points to a record low of 2.75 percent.
On Monday European Central Bank president Mario Draghi said that the ECB would cut rates again if needed, including pushing its key deposit rate into negative territory.
"There's a risk premium pull-back today, but more generally there's a glow of comfort for investors, with central banks in Europe and the United States more supportive across the board," said Bjarne Schieldrop, chief commodity analyst at SEB in Oslo.
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