Brent crude oil traded around $107 a barrel today following the extension of Iran nuclear talks.
Brent declined 25 cents to $106.99 a barrel while US oil for August delivery was down 20 cents at $102.93 a barrel, Reuters reported.
The news agency said Iran and six world powers failed to meet a 20 July deadline for a settlement over Tehran’s atomic activities, but held out hope of an eventual agreement by extending the discussions for four more months.
Investors are watching the geopolitical crisis between Moscow and the West over downing of a Malaysian passenger plane in eastern Ukraine, which led to increased oil prices last week.
The US has accused Russia of complicity in shooting down Malaysia Airlines flight MH17.
US President Barack Obama warned Russian President Vladimir Putin of additional sanctions on Moscow if Russia fails to change course in Ukraine.
The US has also imposed sanctions on several companies, including Russian oil firm Rosneft.
Meanwhile, the worries over Iraq oil supplies and sluggish physical demand from refiners with low processing profits have accounted for a decline of more than 7% in oil prices since a peak above $115 a barrel in June 2014.