LONDON: Brent crude oil held above $104 per barrel on Monday, supported by strong equity markets and a slightly lower dollar, despite a weaker outlook for fuel demand and ample supplies.
World stock markets rose to five-year highs, boosted by optimism over the outlook for global growth, while the dollar slipped 0.2 percent against a basket of currencies, easing from its highest since July 2010.
Brent crude futures for July were down 30 cents at $104.34 per barrel by 0810 GMT, after three straight sessions of gains. US crude fell 50 cents to $95.52.
"The strength of the dollar has been negative for commodities, so a slight easing in the currency is positive," said Olivier Jakob, analysts at Swiss energy consultancy Petromatrix.
"But short-term the market looks fairly balanced, with Brent trading in a range between $90 and $110 per barrel. It is difficult to see it breaking out of that for a while."
Several countries celebrated religious festivals on Monday, keeping market volumes low in Europe.
Traders awaited the minutes of a Federal Reserve meeting due to be released on Wednesday to assess the outlook for the oil markets, as any hints of continued monetary easing by the US central bank would be bullish.
But the fundamental outlook for oil looked less positive with a weaker oil demand growth outlook for 2013, as well as higher supply forecasts by the International Energy Agency last week.
The IEA last week forecast 8 percent growth in world oil demand on aggregate between 2012 and 2017, while supplies outside the Organization of Petroleum Exporting Countries are expected to rise 10 percent.
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