Oil prices have steadied due to a dip in dollar value, despite losing 11% of its value in the month July amid concerns of an excess in supply.
Brent crude for September fell 15 cents at $56.50 a barrel, while the US August crude slipped 15 cents to $50.00 a barrel, Reuters reported.
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A nuclear deal between Iran and the West is set to put pressure on oil, as it would allow oil rich Iran to boost its export to the oversupplied market.
The demand growth is already faltering amidst slowing growth in China and European region.
Last week, Iranian Supreme Leader Ali Khamenei promised to challenge American policies in the region in a speech, despite the deal over Tehran’s nuclear programme.
The US Secretary of State John Kerry called the speech as ‘very disturbing’.
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By GlobalDataPVM Oil Associates analyst Tamas Varga told the news agency: "The Kerry comments are worrying. They suggest implementing the Iran nuclear deal may not be as straightforward as it originally seemed, and may be therefore that Iranian oil exports could reach the market more slowly than expected, perhaps."
The International Energy Agency said last week that it is expecting a decline in global oil demand growth in 2016 to 1.2 million barrels per day (bpd) from the existing 1.4 million in 2015.
