Summary New York's main contract slid 24 cents to $89.04 a barrel.
Oil fell in Asia Tuesday as traders engaged in profit-taking following a huge surge the previous day, with Moody s downgrade of French government bonds contributing to the slide, analysts said.
New York s main contract, light sweet crude for delivery in January, slid 24 cents to $89.04 a barrel in the afternoon and Brent North Sea crude for January delivery fell 16 cents to $111.54.
Oil surged more than $2 on Monday as violence intensified in the Israel-Gaza conflict, sparking fresh concern about supplies from the crude-rich Middle East.
Israeli strikes killed 32 Palestinians, taking the Gaza death toll to 109 as UN chief Ban Ki-moon joined efforts to end the worst violence in four years.
In Europe, France came under fresh pressure after Moody s became the second of the three major ratings agency to downgrade its top rating.
"Today there s a bit more of a risk-off theme with the French downgrade and a bit of profit-taking on the back of yesterday s big move," said Jason Hughes, head of premium client management for IG Markets Singapore.
