US, Brent Crude End Lower as Markets Digest Saudi Unrest

Brent and U.S. crude oil futures settled lower in volatile trade Thursday, as crude markets were beset by deeper geopolitical concerns after witnesses reported that police fired upon protesters in Saudi Arabia's Eastern province.

Crude prices pulled off session lows as jittery markets reacted to yet another instance of unrest in the Arab world. However, oil prices slipped back on word that the unrest was driven by protesters in the eastern city of Qatif, home to a Shiite minority.

U.S. officials told NBC News that Saudi police intentionally dispersed protesters with "less than lethal" force.

Earlier, a witness told Reuters that police lobbed percussion bombs to disperse a crowd of about 200 people belonging to the kingdom's Shi'ite minority. 

Earlier reports also said activists have made unprecedented calls for mass protests against the kingdon's absolute monarchy on Friday. Protests are also planned in other Gulf countries such as Yemen, Kuwait and Bahrain on Friday, after the day's religious prayers. 

In London, Brent crude [LCOCV1  115.50    0.07  (+0.06%)   ] fell 51 cents to settle at $115.43 a barrel, in trading between $113.52 and $116.55.

On the New York Mercantile Exchange, U.S. light, sweet crude [CLCV1  102.78    0.08  (+0.08%)   ] for April settled down $1.68 at $102.70, after moving earlier between $100.62 to $105.06. 

Oil prices came under pressure early Thursday as the dollar strengthened on renewed Euro zone credit worries, but analysts said fears persisted that prolonged conflict in Libya could do long-lasting damage its oil infrastructure. 

Oil prices were also hit by data showing that China, the world's second largest oil importer, unexpectedly posted the largest trade deficit in seven years, stirring global economic growth worries.