Oil prices dip on rising OPEC production

Oil prices pared earlier gains and settled lower Monday as oil output of the Organization of the Petroleum Exporting Countries (OPEC) increased.

OPEC ministers will meet in Vienna, Austria, to discuss production targets on June 11.

Markets expected that OPEC production rose by 75,000 barrels a day to an average 29.988 million last month.

The news that an oil exporting port in Libya is about to reopen is putting crude prices under pressure.

The Hariga port in Libya is expected to open within two days after the government approved the salary increase for guards.

Libya has become the smallest producer in OPEC during the past year as unrest disrupted output and shipments. Markets projected that several hundred thousand barrels of Libyan crude will flow to the international market this year.

Crude prices also moved down as U.S. dollar appreciated against other currencies. The U.S. dollar rallied against major currencies Monday after U.S. manufacturing data was corrected and showed steady expansion. The stronger dollar makes crude oil prices more expensive and less attractive for buyers holding other currencies.

Light, sweet crude for July delivery moved down 24 cents to settle at 102.47 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery lost 58 cents to close at 108.83 dollars a barrel.