Crude, which tipped a 14-month high earlier this month, has suffered heavy selling in the past couple of weeks on fears about the impact on demand caused by new European lockdowns.
Investors are now looking to Washington, where the House of Representatives is due to hold a final vote on Biden's vast rescue package for the world's top economy, with the Democrat-controlled chamber expected to pass it for the president to sign off by the weekend.
Hydrogen product maker Iwatani jumped 10.1% after the Nikkei business daily reported that the Japanese government was likely to set a target to expand the use of hydrogen to 10 million tonne by 2030 to meet its emission goal.
The Nikkei index fell 0.4% to 26,645.23 by the midday break, after hitting its highest level since April 1991 of at the open. The broader Topix lost 0.47% to 1,767.55.