Brent crude oil traded below $109 a barrel amid expectations of additional supplies as Libya recommences operations at a key oilfield.
Brent crude dropped 31 cents to $108.63 a barrel while US crude declined three cents to $103.37 a barrel, Reuters reported.
Libya has restarted operations at the 340,000bpd El Sharara oilfield as protesters ended a four-month strike.
The move is expected to increase Libya’s existing crude output and the government has recently ended an oil crisis by signing an agreement with rebels to reopen the Ras Lanuf and Es Sider oil terminals.
Reuters noted that easing worries over possible disruptions to exports from Iraq also dragged on prices.
Investors are awaiting more information on US oil inventories and Chinese trade data, due for release later this week.
Data from the American Petroleum Institute (API) has revealed that US crude inventories declined by 1.7 million barrels in the week ending 4 July.
The US Energy Information Administration (EIA) is scheduled to unveil weekly crude oil stocks data later on Wednesday.