Brent crude edged towards $110 a barrel on Tuesday, trading close to its lowest in nearly a month, as fears of supply disruption in Iraq eased and prospects for a rise in Libyan exports improved.
The benchmark is headed for a seventh straight session of losses, the longest-losing streak since October 2012. Brent is down nearly 5 percent since the Iraq crisis drove prices to a nine-month high of $115.71 in June.
August Brent crudewas at $110.03 a barrel by 0324 GMT, down 21 cents. U.S. crude futures for August edged down 15 cents to $103.38, after settling down for a seventh session on Monday, the longest decline since December 2009.
"The market appears to be going through a process of removing the Middle East premium attached to Iraq," said Michael McCarthy, chief strategist at CMC Markets in Sydney.
"There is very unlikely to be a sweeping change in Iraq and the market is re-pricing oil on the back of that. To add to the picture, we have some technical selling kicking in."
Investors have pared down the risk that Islamic militants could advance southwards towards Baghdad and disrupt oil flow in Basra, which accounts for the bulk of Iraq's output and exports.
Still, Iraq remained in political limbo as its new parliament put off its next session for five weeks on Monday.
There could be significant downside for Brent if it falls below key support at $110, McCarthy said. The next support levels are at $108.50 and $105.50-$106.00, he said.
Source: Reuters
The benchmark is headed for a seventh straight session of losses, the longest-losing streak since October 2012. Brent is down nearly 5 percent since the Iraq crisis drove prices to a nine-month high of $115.71 in June.
August Brent crude
"The market appears to be going through a process of removing the Middle East premium attached to Iraq," said Michael McCarthy, chief strategist at CMC Markets in Sydney.
"There is very unlikely to be a sweeping change in Iraq and the market is re-pricing oil on the back of that. To add to the picture, we have some technical selling kicking in."
Investors have pared down the risk that Islamic militants could advance southwards towards Baghdad and disrupt oil flow in Basra, which accounts for the bulk of Iraq's output and exports.
Still, Iraq remained in political limbo as its new parliament put off its next session for five weeks on Monday.
There could be significant downside for Brent if it falls below key support at $110, McCarthy said. The next support levels are at $108.50 and $105.50-$106.00, he said.
