Brent oil fell by nearly $1 per barrel on Monday, pressured by sinking heating oil prices as the market looked toward the end of a long and frigid winter and as supplies increased from Libya and the North Sea.
Yet U.S. crude ended above $100 for the first time this year, as investors awaited direction from the new head of the U.S. Federal Reserve on the course of the central bank's monetary policy.
Intense and relentless cold has propped up oil prices as demand for heating fuels skyrocketed and refiners pumped out distillates. That is set to yield next week as temperatures in large cities are expected to moderate.
By afternoon, U.S. heating oil futures slipped by nearly 2 percent below $3 per gallon, pressured by weak diesel cash prices that also weighed on oil, said Stephen Schork, editor of the Schork Report in Villanova, Pennsylvania.