Oil fell to around $65 a barrel today, extending a retreat sparked by easing concerns of a supply shortfall in the United States, the world's top fuel consumer.
London Brent crude fell nearly 5 per cent last week, partly after a US government report showed increasing stockpiles.
Its dip below $65 a barrel on Monday may prompt more investors to sell, dealers said. "At the moment, Brent may try to do a bit more on the downside," said Kevin Blemkin, a broker at Man Financial in London.
"Technically, it does still look weak." Brent, currently seen as more representative of global oil prices than US crude, was down 27 cents at $65.04 a barrel earlier.
US crude slipped 27 cents to $61.66. Trading volume was relatively light for Brent because of a public holiday in the UK, potentially exaggerating price moves later in the session.
Oil traders have shrugged off falling U.S. gasoline stocks and violence in Nigeria, Africa's top oil exporter, has had a limited impact, possibly because investors are looking at other assets. "When prices went down in the past we saw some investors come into the market to buy on the dips, but we haven't seen it," said Tetsu Emori, chief strategist at Mitsui Bussan Futures Ltd.
"People don't want to take huge long positions in the crude market... Other (commodity) markets are looking much brighter." Tokyo gold futures rose more than 2 per cent to a two-month high and platinum futures hit a record high on Monday.