Brent crude oil dropped below $105 a barrel today as concerns over supply disruption eased due to US intervention in Iraq.
Reuters reported that Brent declined 12 cents to $104.90 a barrel while US crude increased 7 cents to $97.72 a barrel.
Last week US President Barack Obama approved limited air strikes on Iraq to stop the advance of Islamic State forces.
Islamic State fighters had made quick gains in northern parts of Iraq, leading to a sharp increase in oil prices at the end of last week.
The news agency noted that the US air strikes on the Sunni insurgency had calmed market worries over the risk to oil production, helping pull prices lower again.
Meanwhile, oil exports from southern Iraq are continuing at record pace and the Kurdistan Regional Government’s oil pipeline through Turkey is operating normally and pumping 120,000 barrels per day of crude oil.
Iraqi Kurdistan revealed on Friday that its oil production remained unaffected despite the violence.
According to Reuters, oil markets are well supplied in most parts of the world, and North Sea crude oil for immediate delivery is trading at a discount of $1 to $2 below the Brent futures front month.
The Organization of the Petroleum Exporting Countries (OPEC) said its members increased production in July despite the fighting in Iraq and Libya.