Oil sank on Monday, with Brent near a 14-month low and U.S. oil sinking to its weakest since January, as weak demand and easing concerns over risks to supply offset fears about geopolitical risk. On Monday, oil shed nearly $2 as investor worries over conflict in Iraq eased, and as higher Libyan oil output added to already ample supplies.
Brent crude for October delivery was flat under $102 a barrel, still within view of a 14-month low after closing $1.93 a barrel lower on Monday. U.S. crude for September delivery added to earlier losses, dropping by $1.93 to settle at $94.48 a barrel, its lowest since January 17. The contract, which expires on Wednesday, ended the previous session down 94 cents.
Iraqi and Kurdish forces recaptured Iraq’s biggest dam from Islamist militants with the help of U.S. air strikes to secure a vital strategic objective in fighting that threatens to break up the key oil producing country.