West Texas Intermediate crude pared losses as equities came off intraday lows after European policy makers signaled flexibility on the application of an unprecedented bank tax in Cyprus.

Futures slipped for the first time in three days as the levy on bank savings threatened to worsen Europe’s debt crisis. While demanding that the tax raise the targeted 5.8 billion euros ($7.6 billion), officials said easing the cost to smaller savers was up to Cyprus.

Finance ministers in the euro area reached an agreement on March 16 forcing depositors in Cypriot banks to share in the cost of the latest bailout.

Cyprus President Nicos Anastasiades will try to persuade lawmakers to back a plan to impose a bank tax on the island nation’s depositors as part of a 10 billion-euro ($13 billion) bailout aimed at preventing a financial collapse and a possible departure from the euro area. A vote on the tax was delayed for a second day until tomorrow.

Banks in the island nation will remain shut tomorrow and March 20, a government official said, asking not to be identified.

Oil also pared losses after Oil Minister Abdulbari al-Arusi said Waha Oil Co.’s pipeline in Libya was shut because of a strike at its Gialo field, cutting the country’s crude output by 120,000 barrels a day.

WTI for April delivery declined to $91.76 a barrel and later climbed to $93.44 on the New York Mercantile Exchange after falling to $91.76.

Brent for May settlement dropped 66 cents, or 0.6 percent, to $109.16 a barrel on the London-based ICE Futures Europe exchange. Volume was 12 percent below the 100-day average. The European benchmark grade was at a premium of $15.48 to WTI for the same month. That’s down from $16 on March 15 and is the lowest level since January.

Gold prices topped $ 1,600 an ounce for the first time in more than two weeks because of the new investors' fears about the debt crisis in the eurozone.

Euro zone finance ministers proposed a tax on deposits in banks in Cyprus, so he could get 10 billion euros of financial assistance. Parliamentary vote on the issue, originally scheduled for today, has been postponed indefinitely, until Friday, as the Cypriot authorities continue to negotiate the terms of financing, in particular - the taxation of contributions of less than 100 thousand euros.

Demand in the physical market of Asia declined with the increase in prices, the dealer in Singapore and Hong Kong.

Investors are waiting for the outcome of the Fed meeting, which will take place on Tuesday and Wednesday to assess the attitude of the central bank to stimulate action. Stocks of the world's largest gold-exchange-traded fund (ETF) SPDR Gold Trust, meanwhile fell by 3.311 tonnes to 1.232,996 tons - the minimum amount since October 2011.

April futures price of gold on COMEX rose to 1610.40 dollars per ounce.