Brent crude was little changed above $107 on Tuesday, after falling in the previous session, on concerns of demand growth as investors worried last week’s pact by European leaders may not be enough to stop the region’s debt crisis from worsening.

The worries echoed across financial markets. Asian stocks sank, the euro languished near a twomonth low, gold plunged to a sevenweek low and copper fell after posting its biggest decline in three weeks.

Oil will be driven by headlines on Europe’s fiscal condition and an upcoming OPEC meet, with support coming from supply uncertainties in the Middle East.

Brent rose 6 cents to $107.32 a barrel by 0433 GMT, after sliding to as low as $107.07 and settling down $1.36. U.S. crude gained 17 cents to $97.94, after settling $1.64 lower, trading below $100 for a third day.

"Markets probably are thinking the euro zone is taking too long to get its act together," said Tony Nunan, risk manager at Mitsubishi Corp.

"But it’s also true that you can’t force things at any quicker rate because of the sheer number of countries involved in the decision making process."

Friday’s optimism over the European summit deal to strengthen budget discipline was overshadowed by its shroud of legal uncertainty and the absence of an unlimited financial backstop for the single currency.

The uncertainty worsened after ratings agency Moody’s said it would review ratings of all EU member states in the first quarter of 2012, while rival Fitch said the summit had failed to provide a "comprehensive" solution to the debt crisis.

OPEC MEET

Oil investors are awaiting the outcome of a meeting of producer group OPEC. The group on Monday targeted a new 30million barreladay production deal aimed at healing the rift left by a badtempered failure to reach an output agreement when it last met in June.

At stake for the Organization of the Petroleum Exporting Countries when it meets on Wednesday is a credible policy going into a year when a sluggish global economy could undermine fuel demand and send oil prices tumbling from over $107 a barrel now.

"The members will aim for a proper meeting, a unanimous agreement this time after talks broke down in the last meeting," Nunan said.

Without a collective supply target, OPEC members with spare capacity Saudi Arabia and its Gulf Arab allies remain free to pump at will.

Saudi Oil Minister Ali alNaimi confirmed on Monday that the kingdom pumped 10.047 million barrels per day in November.

"Whether or not OPEC agree to a ceiling, we see the end result being that Saudi Arabia, Kuwait and the UAE will be the main swing producers in the rebalancing process over the next six months," JPMorgan analysts said in a report.