Oil fell over a $1 today as investors took profits after prices hit a record $111 in the previous session.
"One dollar down is not very significant, it would need a lot more weakness to shake out the speculators," said Christopher Bellew at Bache Financial in London.
US crude for April delivery fell over $1 to $109.27 in volatile trade on the day April contract options expire. The contract was down 76 cents at $109.57 at 3.32pm.
It touched a record for the seventh time in a row in the previous session and is up nearly 8 per cent this month and about 14.5 per cent this year.
London Brent crude for April, which expires later in the day, hit a new record of $108.02 before easing back to $106.78.
Barclays Capital said tight fundamentals, including disappointing non-OPEC production and soaring energy imports into China, continued to underpin the record high oil prices.
Fundamentals in the middle distillates market - heating oil, diesel and jet fuel - remain strong on the back of low stocks and extensive refinery maintenance in Europe and in key suppliers to the region.
Gas oil futures, the benchmark for European diesel, heating oil and jet fuel prices, hit a fresh record of $1000.50 a tonne on persistent diesel shortages in Europe due to low stocks and extensive refinery maintenance.
The gas oil crack, the premium of ICE gas oil futures to Brent, hit a new record high of $26.78 in a sign of tight distillate supply situation.