Demand outlook for crude oil remains bleak with analysts expecting the world economy to suffer from prolonged slowdown because of sovereign debt crisis in euro zone and recession in the US.
This is reflected in the decline in oil prices in the international market with the Brent crude prices sliding a fifth straight session.
Oil prices declined also because of the expected resumption of production and pipeline operation. TransCanada Corp expects to restart its Canada-to-US Keystone crude oil pipeline.
However, some traders expect disruption in supply of crude oil from middle east because of fighting in Lebanon and Gaza and protests in OPEC-exporter Kuwait.
Maintenance-curbed North Sea production, the fear premium associated with Middle East turmoil and recent central bank moves to stimulate sputtering economies have combined to support crude futures, while uncertainty about Europe and slowing growth in China have weighed on oil prices.
In a recent session, Brent December crude fell 70 cents to settle at $109.44 a barrel. The North Sea Buzzard oil field, Britain's largest, is expected to restart on October 25 or 26 after a maintenance shutdown, reports suggest.
Also lending support to Brent, Royal Dutch Shell said it has declared force majeure on exports from Nigeria of Bonny and Forcados crude grades.