Brent crude oil fell towards $107 a barrel on Tuesday as worries about supply disruptions in the Middle East eased, though investors were wary that more negative headlines from Egypt could trigger renewed volatility.
Egypt's interim rulers, aiming to defuse a tense situation after 51 people were killed in violence on Monday, issued a faster-than-expected timetable for elections to try and drag the country out of crisis.
Brent fell 22 cents to $107.21 by 1348 GMT, after slipping to a session low of $106.85 earlier. U.S. crude fell 36 cents to $102.78, recovering from a low of $102.31.
Brent is still up more than $7 per barrel from mid-June, lifted by a better macro-economic backdrop and Middle East supply worries. It gained 5.4 percent last week, its biggest gain in a year.
Van Mourik said further negative headlines from Egypt, or elsewhere in the region, could trigger more spikes in the oil price.
Highlighting the fragile situation in other parts of the Middle East, 53 people were wounded by a car bomb blast in Beirut's southern suburbs on Tuesday, a stronghold of the Lebanese Shi'ite Hezbollah militant group that has been fighting in Syria's civil war.
However, improved supply from elsewhere in the region helped push oil prices lower for now.
The flow of crude from Kirkuk in Iraq to the port of Ceyhan in Turkey will resume in two to three days after being interrupted for weeks due to a pipeline leak, two sources in Iraq's state-run North Oil Company (NOC) said on Monday.
Investors are now waiting for a raft of data this month on China's economy that could show growth in the world's No. 2 oil consumer grinding towards a 23-year low, according to a Reuters poll.
Data on Tuesday showed Chinese consumer inflation accelerated more than expected in June, limiting room for monetary policy loosening to underpin the economy.