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Oil fell more than a dollar to less than US$68 a barrel on Monday, pulled lower by expectations that any sanctions against oil producer Iran were some way off and would not necessarily disrupt export flows.
US light sweet crude was down US$1.17 to US$68.02 a barrel by 1731 GMT , just off a session low of US$67.77.
London Brent crude settled at US$67.71, US$1.44 a barrel below Friday's close. Its session low was US$67.59, the lowest level since June 21.
Trading volumes were light as the New York Mercantile Exchange pit was closed on Monday to mark the Labor Day holiday. US futures were only trading electronically and the ICE exchange, where Brent trades, closed early at 1715 GMT.