Investing.com - Oil prices fell on Monday after data pointing to an increase in production by the Organization of the Petroleum Exporting Countries last month highlighted concerns about global oversupply.
Crude oil for June delivery on the New York Mercantile Exchange was down 78 cents or 1.7% at $45.14 a barrel at 1034 ET.
Global benchmark Brent was trading at $46.33 on the ICE Futures Europe exchange, down 2.2%.
Output from OPEC in April rose to 32.64 million barrels a day from 32.47 million barrels a day a month earlier, a survey from Reuters showed on Friday, underlining concerns about a massive global supply glut.
The increase was largely due to production increases led by Iran and Iraq, which offset supply disruption arising from an oil worker strike in Kuwait last month.
Trade volumes remained thin due to the May Day holiday in many countries.
Oil prices, which hit five-and-a-half-month highs Friday, have rebounded from January’s 12-year lows amid indications that lower prices are beginning to erode higher-cost supply, which could help ease the supply glut.
On Sunday, International Energy Agency chief Fatih Birol said oil prices may have bottomed out, providing that the global economy remains on track.
U.S. energy secretary Ernest Moniz said Monday that he expects global oil supply and demand to rebalance in approximately a year's time.
U.S. oil output is expected to drop by 600,000 barrels per day this year from a year ago as producers respond to low crude prices, Moniz said.
But many analysts remain wary of the recent price recovery, particularly with U.S. crude inventories currently at a record 540.6 million barrels, according to the latest report from the Energy Information Administration.