Brent crude fell towards $114 a barrel on Tuesday as oil exports from Iraq remained unaffected by Islamic insurgents’ continued advance on Baghdad.
Reuters reported that Brent fell 69 cents to settle at $114.12, its biggest percentage drop since 16 May, while US crude for August delivery dropped 66 cents to settle at $106.17, its biggest drop since 30 May.
The violence in Iraq increased Brent futures to $115.71 a barrel last Thursday, which was reported to be the highest level since 9 September 2013.
Iraq currently ships 90% of its crude exports from southern terminals, which are presently safe from occupation by Sunni insurgents.
The country’s oil exports in June were near record rates at about 2.53 million barrels per day, the news agency reported.
Militants from the Islamic State of Iraq and the Levant have reportedly taken control of three towns in Iraq’s western Anbar province.
The militants also seized two frontier crossings on the Iraq and Syria border over the weekend.
Disappointing manufacturing data from Europe has also affected oil prices.
Markit’s Composite Purchasing Managers’ Index (PMI), based on surveys of several firms throughout the 18 euro zone countries, declined to 52.8 in June 2014 from May’s 53.5.
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