Oil prices eased on Monday, with Brent slipping below $110, as the dollar rose against the yen after Japan intervened in the currency markets to stem the rise of the yen.
Investors and analysts said the oil market may be swayed by
a spate of economic events this week including a U.S. Federal Reserve on Wednesday, a European Central Bank press conference on Thursday and a G20 meeting mid-week amid deepening concerns over the euro zone debt crisis.
Brent crude fell 51 cents to $109.40 a barrel by 0949 GMT after closing at $109.91 on Friday.
U.S. crude fell 82 cents to $92.50 per barrel.
The dollar climbed to a three-month high against the yen on Monday after Japan's intervention. The U.S. dollar index .DXY also rose against a basket of currencies. A stronger dollar makes oil more expensive in other currencies.
This morning, it is the Japanese intervention in the foreign exchange market. On the macro front, it is a big week this week, Olivier Jakob with Petromatrix said.
Jakob also said trading of the price spreads between U.S. crude and Brent and of the forward curve might continue to influence the market this week.
In the middle of last week U.S. crude rallied on trading of its spread with Brent, while Brent was held back as backwardation of the curve flattened. Both got a brief boost from a deal struck by the euro zone to recapitalize its banks and strengthen its rescue fund.
But persistent doubts about the plan have put pressure on the market, and the outright price of Brent crude ended Friday little changed from the week before.
The oil market reaction to euro zone inflation and jobs data on Monday was limited. Consumer prices in the 17-nation euro area stayed at 3 percent in October, according to a first estimate by the European Union's statistics office Eurostat, roughly in line with a 2.9 percent forecast in the Reuters poll of economists.
Eurostat in a separate report said the jobless rate in the euro zone rose slightly to 10.2 percent in September from a revised 10.1 percent in August.