SINGAPORE: Brent crude futures slipped towards $111 per barrel on Wednesday, hurt by persistent concerns over global growth and oil demand, while Europe's festering debt crisis added to uncertainty.
Simmering tensions in the Middle East kept losses in check, however, with investors increasingly convinced that a dispute over Iran's nuclear programme will drag on.
"It's hard to get bullish when the numbers are so bad, especially in China and the euro zone," said Tony Nunan, an oil risk manager at Mitsubishi Corp, referring to weak manufacturing data released this week.
"But prices are not going to fall that far, as the situation between Iran and Israel will keep the heat under the market until the end of the year."
Brent November crude futures had fallen 39 cents to $111.14 a barrel by 0444 GMT. They ended Tuesday below two critical technical levels -- the 50-day moving average at $112.06 and the 200-day moving average at $112.09.
US November crude shed 21 cents to settle at $91.70 a barrel. It could drop below $89 per barrel after failing to break through key resistance at $93.33.
But a supportive factor for US prices was data from the American Petroleum Institute showing that inventories rose less than expected last week, adding 462,000 barrels, against expectations for a build of 1.5 million barrels.
The US Energy Information Administration (EIA) releases its weekly estimates on Wednesday at 1430 GMT.
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