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Oil slips despite unrest

World oil prices sank on Monday as traders appeared to shrug off geopolitical worries over key crude producing regions, dealers said.

Brent North Sea crude for delivery in September dropped 94¢ to stand at $107.45 per barrel nearing midday in London.

US benchmark West Texas Intermediate for September fell 61¢ to $101.48 a barrel.

“The oil market still appears unaffected by the numerous sources of geopolitical crisis,” said Commerzbank analysts in a note to clients.

“The complacent attitude of market participants is amazing in view of the considerable risks to supply and could result in a significant price increase the moment they choose to reassess the situation.”

Before the weekend, however, Brent oil prices had however surged on Friday on geopolitical concerns. Brent tends to react more dramatically to international risks than WTI, which responds mostly to the forces of supply and demand in the United States.

Analysts warn that the eurozone economy could be hurt by any fresh sanctions on Russia for its support of anti-government rebels in Ukraine, who have been accused of shooting down Malaysia Airlines Flight MH17 on July 17. Because of heavy shelling in the area, observers from the Organisation for Security and Cooperation in Europe, or OSCE, have been unable to access the site where the plane came down, killing 298 people.

On Sunday, Russia accused the US of hindering the OSCE’s work in Ukraine, while the Netherlands scrapped plans for an armed international mission to secure the area.

Moscow has accused the US of supporting Kiev against separatist rebels in eastern Ukraine and of “sharing the responsibility of spilt blood” in the conflict.

US President Barack Obama has called for an immediate ceasefire in Gaza, as the raging conflict entered its third week on Monday.

Later this week, traders will digest US economic growth and jobs data, as well as a US Federal Reserve interest rate decision.