Brent crude oil fell below $106.50 a barrel today as concerns over global supplies eased due to the renewed violence in Libya.
Brent futures declined 59 cents to $106.39 a barrel while US crude fell 27 cents to settle at $100.64 a barrel, Reuters reported.
Various soldiers were killed and aircraft destroyed in Libya, as rival militias in the country fought to take control of Tripoli’s airport.
The latest fighting comes as Libya’s oil production reaches around 500,000bpd after Tripoli reached an agreement with rebels controlling important export facilities.
Oil prices have declined steadily after hitting a nine-month high of $115.71 in mid-June, as Islamist insurgents in Iraq took control of swathes of northern and western parts of the country.
Investors are awaiting US oil inventory reports, scheduled for Tuesday and Wednesday.
Analysts polled by Reuters anticipate a decrease in crude stocks of two million barrels for the week ending 11 July, based on increased refining activity.
The news agency reported that investors are also watching geopolitical issues in Iran and Ukraine, as well as China’s June growth figures, scheduled for Wednesday.