Brent crude oil began the week on the decline as supply interruption risks in Iraq eased.
The commodity traded at $112.59 at 8:30 GMT as the geopolitical tension that has been propping oil prices up began to fade.
CNBC reported that the Sunni insurgency that has taken over much of northern Iraq faced some pushback over the weekend as the Iraqi government sent tanks and armored vehicles to oust rebel groups from the city of Tikrit.
Although there has been a great deal of fighting surrounding Iraq's largest refinery, the nation's oil exports have remained unaffected as the bulk if Iraqi oil comes from oilfields in the south, a part of the country which has been untouched by the fighting.
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A meeting between US Secretary of State John Kerry and Saudi Arabian King Abdullah also calmed worries about a supply interruption as the meeting indicated that Saudi Arabia would ramp up its own production to make up for any lack from Iraq.
Moving forward economic data is expected to drive oil prices this week with several important releases due out.
Most notably will be US non-farm payrolls data, which is due out a day early on Thursday due to the Independence Day holiday. Analysts expect to see that US employers added anywhere from 210,000 to 213,000 jobs in June, with the unemployment rate remaining unchanged.
If the figures meet expectations, it will mark the fifth month in as many of gains above 200,000. The jobs report will be especially important as data from the US last week painted a worrying picture of the nation's second quarter growth.
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