Brent crude traded near $115 a barrel on Friday due to increased risks of supply disruption from Iraq.
Reuters reported that Brent crude dropped eight cents to $114.98 a barrel, while US crude oil contract rose 27 cents to $106.70 a barrel.
Iraq is currently experiencing widespread violence, which has been ongoing for several days.
The country’s biggest oil refinery, Baiji, has been targeted by Sunni militants, who used machine-gun fire and mortars to attack the facility.
Government forces fought with Sunni militants to take control of the Baiji refinery on Thursday.
Baiji currently produces 300,000bpd and if the facility remains closed, Baghdad is required to import additional oil products in order to meet its own domestic consumption, which will further affect oil prices.
Reuters reported that fields south of Baghdad, where most of the country’s 3.3 million barrels per day of oil is produced, remain unaffected.
Foreign oil companies have urged their employees to vacate Iraq, posing threat to supplies from the country.
Iraq has received support from the US, which has decided to send approximately 300 military advisers to monitor the situation.