Crude prices drop as Iraq worries ease

Oil prices fell Thursday as markets thought Iraq unrest would not disrupt crude output.

Traders kept watch on Iraq. Despite the escalating violence, tensions in the market are fading on signs that crude production from the southern Iraq has not been disrupted.

U.S. economic data came in mixed Thursday. U.S. jobless claims slipped last week while consumer spending increased less than expected in May.

In the week ending June 21, the advance figure for seasonally adjusted initial claims for unemployment benefits was 312,000, a decrease of 2,000 from the previous week's revised level, said the Labor Department.

Meanwhile, the four-week moving average, which helps smooth out week-to-week volatility, was 314,250, an increase of 2,000 from the previous week's revised average, the department added.

U.S. personal consumption expenditures increased 0.2 percent in May, while personal income rose 0.4 percent, the Commerce Department reported. Economists had expected 0.4-percent gains for both aspects.

Light, sweet crude for August delivery moved down 66 cents to settle at 105.84 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery lost 79 cents to close at 113.21 dollars a barrel.