Brent crude held near $106 a barrel on Friday as ample supply continued to drag on prices a day after the benchmark posted its worst monthly performance since April 2013.
Analysts expect global production to exceed demand this year, while a supply glut has built up in Africa and Europe. Brent crude edged down 5 cents to $105.97 a barrel by 0451 GMT after a 5.6 per cent drop in prices last month.
US crude futures for September delivery fell 16 cents to $98.01 a barrel, following a 6.8 per cent decline last month, the biggest monthly loss since May 2012.
Analysts expect global production to exceed demand this year, while a supply glut has built up in Africa and Europe. Brent crude edged down 5 cents to $105.97 a barrel by 0451 GMT after a 5.6 per cent drop in prices last month.
US crude futures for September delivery fell 16 cents to $98.01 a barrel, following a 6.8 per cent decline last month, the biggest monthly loss since May 2012.
Still, Brent's forward prices have risen substantially on worries about longer term oil output in Iraq and Libya, he said.
OPEC's second largest producer Iraq is battling an Islamic insurgency in the north. The conflict threatens to split the country, but has yet to have an impact on near-record oil exports from the south.
Baghdad is also embroiled in a dispute with Iraqi Kurdistan over oil exports via Turkey. Production at another OPEC producer Libya remained way below the more than 1 million bpd that it was pumping in 2012 before protests curbed output and exports.
OPEC's second largest producer Iraq is battling an Islamic insurgency in the north. The conflict threatens to split the country, but has yet to have an impact on near-record oil exports from the south.
Baghdad is also embroiled in a dispute with Iraqi Kurdistan over oil exports via Turkey. Production at another OPEC producer Libya remained way below the more than 1 million bpd that it was pumping in 2012 before protests curbed output and exports.
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