Brent crude oil slid below $105 to a near a five month low due to the prospect of increased supply.
The commodity traded at $104.67 as investors looked to Libya where the government was moving closer to a deal with rebel groups which would reopen some of its crucial oilfields.
For eight months, Libyan oil exports have been depressed as anti-government protesters took over most of the nation's largest export terminals and cut off output.
The protesters, who were asking for more political rights as well as a share of the nation's oil revenue, have recently made progress in talks with the government and could reopen the nation's key oilfields in the next two to three days.
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If the deal is followed through, Reuters reported that most expect to see about a 600,000 barrel per day increase in crude supply. However, some analysts are skeptical of this figure.
Goldman Sachs has said that the impact of Libyan oil on the market will be limited as they expect the nation's output to fall below 500,000 bpd. Others say the promise of a deal between the two sides has been heard before, and are cautious about anticipating the release.
Crude found some support from data out of the US which showed that the nation's companies were hiring at a faster rate in March.
The data helped support US policymakers' claims that the nation's economy was on track and that the spate of poor data seen in previous months was the result of an unusually harsh winter.