Crude oil dropped as supply risks eased in Iraq and Libya. Kurdish forces took over the Bai Hassan and Kirkuk oilfields today, Iraq's Oil Ministry said in a statement. Libya's supply rose as the Sharara field resumed output and two oil-export terminals reopened. The Kurds have taken over more fields in northern Iraq, which could lead to an increase in exports.

WTI for August delivery dropped to $101.33 a barrel (-1.55%) on the New York Mercantile Exchange.

Brent for August settlement fell to $106.92 a barrel (-1.53%) on the London-based ICE Futures Europe exchange.

Gold declined for the first time in three days as concerns eased that banking woes in Portugal will spur a wider debt crisis in Europe, crimping demand for the precious metal as an alternative investment.

Banco Espirito Santo SA sought to calm investors after a parent company missed payment on short-term notes. Goldman Sachs Group Inc. said Santo's troubles are unlikely to cascade in the region as Foreign lenders' exposure to Portugal is low and the European Central Bank is ready to support banks.

Gold futures for August delivery gained to $1336.10 an ounce (-0.18%).