Oil prices fell slightly Tuesday on mixed US economic data, as a weak demand picture offset fears of a potential supply disruption over Iran's nuclear program.
Benchmark oil for April delivery was down 58 cents to $107.98 in midday trading on the New York Mercantile Exchange. It hit a day low of $107.58 earlier in the session.
The contract trimmed its losses after a private research group said that US consumer confidence in February rose from last month to the highest level since a year ago.
That was blunted by a report showing that home prices fell in December for a fourth straight month in most major US cities. Also, orders for long-lasting manufactured goods plunged 4 percent last month, the most in three years. Economists expected a drop of just 1 percent.
Oil had risen to eight-month highs last week, as traders worried about geopolitical tensions related to Iran and its nuclear program.
Oil prices have jumped 10 percent this year.
Despite those headwinds, some analysts said crude prices should weaken because Iran was unlikely to make good on its threat to block the Strait of Hormuz, through which one-fifth of the world's oil tankers pass each day. Another factor - the ongoing economic fragility in Europe - will reduce future demand and help rein in price hikes.
The possible release of oil by the International Energy Agency or the US could also help drive prices down, analysts said. - Sapa-AP