Oil prices have held up better after the Brussels attacks than many had expected but market watchers are keeping their eyes peeled for any sharp moves that may follow.
U.S. WTI light sweet crude oil price are down 0.8 percent at $41.10 a barrel in early Asian hours after ending the previous session just 7 cents lower at $41.45 a barrel.
European Brent crude oil is down 0.7 percent at $41.50 a barrel after finishing the last session 25 cents higher at $41.79 a barrel.
The losses were smaller than some market observers had expected and many attributed declines to data that showed a rise in U.S. stockpiles rather than developments in Belgium.
"It's impressive that oil did what it did. You would have expected it would do worse due to the shock," Allianz chief economic adviser, Mohamed El-Erian, told CNBC overnight.
Oil prices initially fell on Tuesday due to investor jitters after deadly blasts in Brussels prompted a flight towards safe-haven assets such as gold. But the response was modest.
"When a terrible event happens like what we saw yesterday and what we've seen in recent months, there will be a sort of reaction in the market but they don't know what it means ... what we saw was an immediate reaction but it's hard to tell if it's going to be sustained," International Energy Agency's oil industry and markets head Neil Atkinson told CNBC's Squawk Box.