Oil ticked slightly lower early Tuesday, earsing gains in the previous session amid speculation that exports from Iraq, the OPEC`s second-largest producer could be disrupted.
The financial markets were beaten by the prospects of fresh geopolitical turmoil in the Middle East, where fighting in Iraq continues to the threat the fifth-largest reserve of oil in the world, as radical Islamist rebels try to seize more terriroty in the northern part of the country.
West Texas Intermdiate and Brentfutures remained near the nine-month highs hit last week. However, both benchmarks trimmed earlier gains after the Bank of America Corp. said the complete halt of Iraqi output, is "highly unlikely."
- West Texas Intermediate for July Delivery fell 0.33% to $106.55 a barrel on the New York Mercantile Exchange
- Brent for July Delivery fell 0.15% to $112.77a barrel on the ICE Exchange in London
President Barack Obama weighed options for military actions to support Iraq`s besieged government on Monday but no decision has been taken
US and Iranian official discussed the crisis in Vienna on the sidelines of separate negotiations about the Iranian nuclear program.
Both sides said the talks did not include military coordination regarding the crisis in Iraq.