Disappointing data out of the U.S. housing sector coupled with waning fears that conflicts in the Middle East were threatening global oil supply sent crude futures falling on Monday.
In the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in September traded down 0.38% at $101.70 a barrel during U.S. trading. New York-traded oil futures hit a session low of $100.91 a barrel and a high of $102.09 a barrel.
The September contract settled up 0.02% at $102.09 a barrel on Friday.
Nymex oil futures were likely to find support at $99.60 a barrel, the low from July 16, and resistance at $103.45 a barrel, Tuesday's high.
Investors reassessed geopolitical impacts on oil in the Middle East after Hamas and Israel agreed to a 24-hour humanitarian truce on Sunday.
U.S. President Barack Obama had called for a ceasefire between the two sides, but there was no indication of any comprehensive deal to end the fighting, which cushioned oil's losses.
Earlier Monday, an attack on a park in Gaza killed several children, with Israel and Hamas casting blame at each other, though concerns the fighting will embroil the Middle East and disrupt supply backed off on Monday.
Reports of rising gasoline stocks at the U.S. oil hub in Cushing, Oklahoma, as well as news that European refineries are cutting runs or even idling plants due to an influx of oil products from the U.S. sent investors selling oil futures on concerns global supply remains ample, especially considering that disruption fears in war-torn Iraq and elsewhere in the Middle East never panned out.
Soft U.S. economic indicators sent oil prices dipping as well.
The National Association of Realtors reported earlier that U.S. pending home sales fell 1.1% in June, disappointing expectations for a 0.5% gain.
"Activity is notably higher than earlier this year as prices have moderated and inventory levels have improved," NAR chief economist Lawrence Yun said in a statement.
"However, supply shortages still exist in parts of the country, wages are flat, and tight credit conditions are deterring a higher number of potential buyers from fully taking advantage of lower interest rates."
Separately, on the ICE Futures Exchange in London, Brent ol futures for September delivery were down 0.66% and trading at US$107.68 a barrel, while the spread between the Brent and U.S. crude contracts stood at US$5.98 a barrel.