Investing.com - West Texas Intermediate oil futures declined on Tuesday, as market players awaited key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer.
On the New York Mercantile Exchange, crude oil for delivery in August fell to a session low of $105.28 a barrel, the weakest level since June 19, before trimming losses to last trade at $105.74 during European morning hours, down 0.41%, or 43 cents.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 1.3 million barrels in the week ended June 20.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for August delivery dipped 0.21%, or 24 cents, to trade at $113.85 a barrel.
Concerns about ongoing violence in Iraq lingered, as Sunni tribes joined a militant takeover of northern Iraq.
However, oil prices have failed to break higher as the fighting in Iraq has yet to spread to the southern part of the country, which is home to more than 80% of Iraq’s oil output.
Iraqi Prime Minister Nuri al-Maliki has agreed to a July 1 deadline to create a new government, a step required by Washington if Baghdad receives U.S. assistance in battling the insurgents.
Iraq produced approximately 3.5 million barrels a day of oil last month, making it OPEC’s second-biggest oil producer behind Saudi Arabia.