Oil prices hovered near a seven-week low of about $71 a barrel today as fears about an escalating euro zone debt crisis continued to cast a pall on the market.
However, a cold snap in the US mid-Atlantic region, an area heavily dependent on home heating oil and natural gas supplies, and escalating tensions between Iran and western nations continued to support prices.
US crude for March delivery dipped 10 cents to $71.09 a barrel. The contract settled down $1.95 at a seven-week low of $71.19 per barrel on Friday.
London Brent crude slipped 12 cents to $69.47.
A blizzard dumped 2ft of snow across much of the US on Saturday, threatening record snowfall and leaving tens of thousands without power.
Analysts said heightened tensions between Iran and western nations also lent some support to oil prices, which had fallen for four consecutive weeks.
Iran's president Mahmoud Ahmadinejad gave instructions on Sunday for the production of higher-grade nuclear reactor fuel, prompting the United States and Germany to threaten carefully targeted new sanctions against Tehran.
Crude prices fell 2.7 per cent on Friday as a tepid employment report in the United States, the world's top energy consumer, again heightened worries of a sluggish recovery in fuel demand.
Oil prices have lost nearly 10 per cent this year, dragged down by data showing bulging fuel stockpiles in the U.S. despite cold weather, concerns about slower Asian demand if China further tightens its monetary policy, and more recently jitters about Europe's financial system.
Despite a better-than-expected finish on Wall Street, most Asian stocks fell today, as anxiety over fiscal problems in Europe lingered despite the assurances European finance ministers gave to their Group of Seven counterparts this weekend that the euro zone's debt crisis is under control.
Analysts said oil prices are likely to remain volatile this week, as movements in the US dollar and developments on Europe's fiscal problems remain as the key focal points.
US stocks face more turbulence that could send indexes spiralling through key levels this week as doubts about the global recovery's pace persist and fears linger over Europe's sovereign debt woes.
Separately, money managers cut their net long crude oil futures position on the New York Mercantile Exchange in the week through February 2nd, the Commodity Futures Trading Commission said on Friday.