Brent crude oil fell back below $105 per barrel as the risk premium caused by an Israeli air strike on Syria faded.
The benchmark hit its highest in nearly a month above $105 in the previous session on fears of supply disruption following Israeli air strikes on Syria close to Damascus.
Israel played down the air strikes, saying the raids were not aimed at influencing its neighbour’s civil war, but only at stopping Iranian missiles reaching Lebanese Hezbollah militants.
Brent crude dropped 66 cents to $104.80 a barrel by 0832 GMT after settling up at $105.46, its highest finish since April 10 on Monday.
Analysts expect crude oil could rise further on renewed optimism about the health of the global economy, thanks in part to supportive measures from central banks.