On March 26, Brent crude edged below $125 as a possible resumption in crude production from South Sudan offset worries about supplies on news of a sizeable drop in Iranian oil exports due to Western sanctions.
This year, oil supply disruptions from Iran, Syria, South Sudan, and Yemen have supported oil prices with Brent rising 16 percent so far this year. On Saturday, South Sudan said it hopes to resolve a row over oil and other outstanding issues with Sudan within a month or two.
Brent crude edged down 29 cents to $124.84 by 0304 GMT after posting a 68-cent weekly loss on Friday, a second straight weekly decline. U.S. crude fell 30 cents to $106.57.
"The geopolitical risk has been overly built into oil prices as we are in a low demand period where inventories are rising," said Tony Nunan, a Tokyo-based risk manager at Mitsubishi Corp.
"Oil has a bias towards the downside in the next one to two months, but most investors are bullish in the medium- to long term so it's hard to sell down."
A restart at the oil fields of Sudan will bring output from the two countries back to about 350,000 barrels per day, up from about 50,000 bpd currently.
"It's not a small amount and the oil is needed in Asia," Nunan said, adding that the resumption in supply could keep oil prices from rising in summer.