Investing.com - Crude oil futures dropped to two-month lows in subdued trade on Monday, as worries over potential supply disruptions in the Middle East continued to subside.
On the New York Mercantile Exchange, U.S. c
rude oil for delivery in August traded at $100.34 a barrel during European morning trade, down 0.49%.
Prices tumbled 2.04% on Friday to settle at $100.83.
Futures were likely to find support at $99.71 a barrel, the low from May 9 and resistance at $102.05, the high from May 13.
Oil prices have been declining in the past weeks as Libya recently struck a deal with rebels occupying oil ports under terms that would have insurgents give up control over terminals that have been closed for a year. The deal should add 500,000 barrels per day of crude back into the global energy market.
Meanwhile, indications that Iraqi oil exports from the southern part of the country remained insulated from the sectarian violence that has swept the north in recent weeks also weighed.
Oil prices rallied to nine-month highs in June amid fears that an insurgency in northern Iraq would spread to the oil-rich south and disrupt the nation''s oil production.
Investors were now turning their attention to testimony on monetary policy by Federal Reserve Chair Janet Yellen, as well as key data on U.S. June retail sales later in the week.
Elsewhere, on the ICE Futures Exchange, Brent oil for September rose 0.24% to trade at $107.52 a barrel, with the spread between the Brent and crude contracts standing at $7.18 a barrel.