Crude prices drop on supply concerns

Crude prices fell Tuesday as market expected more crude supplies from the Middle East.

Several Libyan oil ports were reopened recently for crude ship. Market expected several hundred thousand barrels of Libyan crude soon to be poured into the market, adding pressure on crude prices.

Concerns over a possible disruption in Iraq also eased. Despite escalating violence, tensions in the market are fading on signs that crude production from southern Iraq has not been affected.

Traders are also awaiting the updated information of U.S. crude inventories due out on Wednesday.

On the economic front, U.S. retail and food services sales rose 0.2 percent in June on a seasonally adjusted basis, said the U.S. Commerce Department. In addition, U.S. import prices advanced 0.1 percent in June following a 0.3 percent rise in May, driven by higher fuel prices, while export prices decreased 0.4 percent in the past month, said the U.S. Labor Department.

Light, sweet crude for August delivery moved down 95 cents to settle at 99.96 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery lost 96 cents to close at 106.02 dollars a barrel.