International benchmark Brent crude saw a small decrease down to $63.17 per barrel at 06.32 GMT compared to Friday's closing price of $63.37, while American benchmark West Texas Intermediate (WTI) was trading at $55.95 at the same time on Monday, down from $56.06 a barrel at trading close on Friday.
Oil prices fell due to fears of a slowdown in global economic growth, while talks over the weekend between Iran and major powers to discard the nuclear deal ended generally on a positive outlook with a greater possibility of lowering tensions in the Middle East.
Last week, prices climbed at the start of the week with escalated tensions in the Strait of Hormuz, one of the world's most strategic choke points for energy transportation.
Last week, Iran’s Islamic Revolutionary Guards Corps (IRGC) said last Friday that it confiscated a British oil tanker in the Strait of Hormuz in retaliation for the seizure by British Royal Marines of an Iranian-flagged oil tanker off Gibraltar on July 4.
To further escalate market supply concerns, Libya’s El-Sharara oilfield was shut down due to suspected valve closure, the National Oil Corporation (NOC) confirmed last Saturday. The El-Sharara oilfield produces more than 300,000 barrels of crude oil per day, forming roughly one third of the oil-rich country's production.
The number of oil rigs in the U.S. decreased by 3 to 776 for week ending July 26 from the previous week, according to data released by oilfield services company Baker Hughes last Friday.
Following the data release, Brent registered at $63.30 per barrel on Friday, marking a 0.33% increase over Thursday's closing price of $63.09.
By Gulsen Cagatay