Brent crude oil fell below $113 a barrel today as supply disruption worries from Iraq eased and government forces launched an attack against a Sunni militia to take control of large areas of the country.
Reuters reported that Brent was down 65 cents at $112.65 a barrel, while US crude declined 40 cents to settle at $105.34 a barrel.
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The news agency said that supply disruptions pushed the North Sea oil benchmark to a nine-month high above $115 two weeks ago and the contract is still up more than 3% this month, its strongest monthly showing since August.
However, violence across large parts of Iraq had less impact on the oil industry with approximately 90% of the country’s oil shipments coming from the south, which is currently unaffected by the fighting.
As part of its plans, the Iraqi Army sent tanks and armoured vehicles to remove Sunni insurgents from the northern city of Tikrit.
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Citing a US official, Reuters reported that US Secretary of State John Kerry and Saudi King Abdullah discussed global oil supplies during a meeting on Friday about the crisis in Iraq.
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By GlobalDataDuring the negotiations, Kerry referred to recent comments by a Saudi oil official that the world’s largest oil producer may increase supplies if crises in Iraq or Syria disrupted supplies.
The reopening of a port in Libya and easing of tensions over the Ukraine crisis also weighed on oil.
Investors are currently waiting for economic data on oil markets, which is scheduled for release later this week.
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