SINGAPORE: Brent crude prices slipped below $110 a barrel on uncertainty over when the US Federal Reserve will scale back its bond-buying program, but unrest in Egypt and reduced oil product supply from Libya kept a floor under prices.
Brent crude oil futures for October fell 24 cents to $109.66 a barrel by 0215 GMT, down from a four-month peak of $111.53 on Aug. 15.
US crude oil futures for September fell 7 cents to $107.03.
Investors are waiting on minutes from the US central bank's latest policy meeting, due Wednesday, which could provide fresh clues on when the Fed plans to taper its monthly $85 billion in asset purchases, which many believe could begin next month.
"There's some book-squaring going on prior to the FOMC minutes on Wednesday as well as Chinese flash PMI numbers on Thursday," said Ric Spooner, chief market analyst at CMC Markets in Sydney.
"The market remains well supplied so we've arrived at a level where traders are starting to get a bit more concerned about the downside risks if there's potentially any increase in the US dollar as a consequence of what the Fed does which would represent a negative for oil prices."
The HSBC China flash manufacturing PMI data will be scrutinised for clues on demand in the world's second largest oil consumer.
Also weighing on prices, US commercial crude inventories likely fell last week by 1.4 million barrels, an initial poll of Reuters analysts showed, ahead of the release of weekly data.
Industry group API is set to release its stockpile report on Tuesday at 2030 GMT. The US Energy Information Administration issues its data on Wednesday at 1430 GMT.
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