Oil prices retreat on profit-taking

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Oil prices dropped on profit- taking Monday after gains for six trading days on concerns that the unrest in Egypt could disrupt oil supplies.

Although Egypt is not a major oil producer, it controls the Suez Canal and the Suez-Mediterranean Pipeline, through which a large amount of crude and refined products were shipped between the Red Sea and the Mediterranean.

The violent unrest in Egypt has stoked fears for exports from oil producers in the Middle East and North Africa. The Middle East accounted for 35 percent of global oil output, according to International Energy Agency.

Traders worried that the unrest could block the shipments through the Suez Canal, though the Suez Canal Authority said Friday the Suez Canal is "secure and safe" and ship traffic through the waterway is normal.

As no major economic data is due on Monday, investors would be looking for any hints on Fed tapering plans from minutes of the Federal Open Market Committee's latest meeting scheduled for release on Wednesday.

Moreover, U.S. monetary policy makers will meet in Jackson Hole, Wyoming, from Thursday to Saturday to discuss the economic situation and monetary policy.

Light, sweet crude for September delivery lost 36 U.S. cents to settle at 107.1 dollars a barrel on the New York Mercantile Exchange.

Brent for October delivery went down 50 cents to close at 109.9 dollars a barrel.

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