Oil prices dropped today as Israel eased its assaults in Gaza, backing a 24-hour humanitarian truce, while experts believe that reductions are limited.

Brent crude was down by 35 cents to settle at $108.04 a barrel, while US oil dropped 11 cents to $101.98 a barrel, reported Reuters.

Although the US had called for a durable ceasefire, there were no signs of any deal to end fighting.

In addition, ongoing violence in Libya and eastern Ukraine also continue to support oil prices.

"In addition, ongoing violence in Libya and eastern Ukraine also continue to support oil prices."

At least 36 people were killed in Libya’s eastern city of Benghazi over the weekend due to a clash between Libyan Special Forces and Islamist militants.

The EU and the US have tightened economic sanctions against Russia over the Ukraine conflict as the fighting has escalated sharply in the east.

The US Coast Guard (USCG) cleared a tanker carrying crude from Iraq’s Kurdistan region to unload its cargo off Texas, while a State Department official signalled that Washington would not intervene to block the delivery.

Meanwhile, traders are awaiting further economic data, including second-quarter GDP figures from the US, due for release later this week, to gauge growth of the world’s largest economy.

Defence Technology