Crude futures were slightly lower early Monday, pressured by news of higher supplies in Libya amid easing worries over output in Iraq, with investors apparently reversing course from safety.
Last week, the cold war heated back up again after Ukraine said it destroyed part of a Russian armored column that crossed its border last Thursday night. Russia denied the story as fantasy. In Libya, a spokesman for National Oil Corp said the nation`s oil production rose to 535 thousand barrels a day on Sunday from 400 thousand barrel a day earlier in the week due to higher output at the Southwestern El Sharara, El Feel fields.
As of 02:47 am ET:As of 02:47 am ET:
- West Texas Intermediate for September delivery fell 0.68% to $96.69 a barrel in the New York Mercantile Exchange
- Brent for September delivery fell 0.77% to $102.73 a barrel on the ICE Exchange in London
The oil sentiment was also weighed by the latest developments in Iraq, where Kurdish fighter pushed to retake the country`s largest dam on Sunday and the U.S. conducted a second day of air strikes in the areas in a drive to reverse gains by Islamic State rebels who have overrun much of the country’s north.
Tensions have been high since the ISIS seized several town and oil fields as well as the Mosul dam in recent weeks, possibly giving them the ability to flood cities or cut off water and electricity supplies. However, geopolitical risks from Ukraine to Iraq have eased slightly pushing Treasury 10-year notes lower for the first time in four days, while yields near the lowest level in 14 months.
The benchmark 10-year rose 2.6 points or 2.366% at 03:47 am ET.