The outlook for oil demand dimmed as fresh political uncertainty in Spain and Italy threatened to disrupt the euro zone's efforts to resolve its debt crisis. Adding to worries, a gauge of business investments in the United States edged lower, eroding the confidence from last week's data.

"The oil markets are taking a breather after the recent gains, and are likely to consolidate around these levels as other markets are also tumbling," said Ker Chung Yang, senior investment analyst at Philips Futures Pte.

"The main concern at the moment is Europe and US economic data has also been mixed."

Brent fell 46 cents to $115.14 per barrel at 0346 GMT, after shedding nearly 1 percent in the previous session. Brent, which hit a more than four-month high above $117 on Friday, has gained for the last three consecutive weeks.

US crude slipped 13 cents to $96.04 per barrel, after losing 1.6 percent on Monday. It gained for the last eight straight weeks, longest winning streak since 2004.

But, trading volumes may be lower this week as major Asian markets are heading into the Chinese New Year holiday.

Asian shares eased and the euro was on the defensive as the political uncertainty in Italy and Spain prompted traders to take profits.