Expectations that OPEC’s oil output in May would come in higher than the previous month has weighed down oil prices today.
A Reuters survey showed that major OPEC oil exports Saudi Arabia as well as other members like Nigeria and Iraq are expected to push up the group’s total output higher to compensate for a further decline in Libyan supply in May.
Since political unrest and violence began in Libya in February the country has almost shut down output in what used to be Africa’s third-largest producer.
The U.S. Memorial Day holiday has markets closed this Monday, including commodities markets, which resulted in lower liquidity and slow trading in oil.
However, there is expectation that gasoline prices will edge up as the U.S. driving season traditionally kicks off on the weekend of Memorial Day.
Brent crude fell 64 cents to $114.39 a barrel and U.S. crude dropped 96 cents to $99.72 by 0620 GMT since the Asian open.