Brent crude fell below $114 a barrel today as the majority of oil output in Iraq remained unaffected by the militant insurgency in the country.
Reuters reported that Brent crude declined 13 cents to $113.87 a barrel, while US crude increased 11 cents to $106.61 a barrel.
United Nations (UN) special envoy to Iraq Nickolay Mladenov was quoted by the news agency as saying that Iraq’s southern oilfields, which produce the majority of the country’s 3.3 million barrels a day, remained safe.
Sunni insurgents and the Iraq Government forces continued to fight on Wednesday to take control of the country’s biggest refinery, Baiji, which currently produces 300,000bpd.
Data from the US Department of Energy’s Energy Information Administration (EIA) revealed that the country’s crude inventories unexpectedly increased by 1.74 million barrels last week to 388 million barrels.
Reuters reported that investors are also watching the threat of further sanctions on Russia by western powers if Moscow does not act more strongly to end the rift between pro-Russian separatists and Kiev in eastern Ukraine.