Oil futures weakened for a third straight session Monday on increased confidence that unrest in Iraq would not interrupt the country's oil exports.
Heavy fighting in the north of Iraq has had little impact on the southern refineries that produce around 90 percent of the OPEC member's oil shipments.
Brent is still up about 3 percent this month, its biggest monthly gain since August. But it has come off the nine-month high of $115.71 hit two weeks ago.
"The fear premium is abating as the chances of fighting in Iraq hitting oil supplies diminishes," said Carsten Fritsch, senior oil and commodities analyst at Commerzbank in Frankfurt. "It now looks very unlikely that the rebels will reach the major oil supply areas."
On Friday, U.S. Secretary of State John Kerry and Saudi King Abdullah discussed global oil supplies during a meeting about the crisis in Iraq, a U.S. official said.
During the talks, Kerry referred to recent comments by a Saudi oil official that the world's largest oil producer would increase supplies if there was a disruption due to crises in Iraq or Syria.
The reopening of a port in Libya and an easing of tensions over the Ukraine crisis also weighed on oil.