Oil prices drop on possible rise in Libyan supply

Oil prices fell Monday as two of the four oil ports occupied by Libyan rebels are expected to reopen.

Libyan rebels have reportedly surrendered control of two oil ports to the government. An agreement signed Sunday between the government and rebels also provides for the rebels to open the other two ports in two to four weeks.

Libya's oil production slumped by more than 1 million barrels a day in the past year as protests halted oil ports and production.

Boasting Africa's largest oil reserves, Libya is right on Europe's doorstep and has more impact on Brent price.

Market was expecting several hundred thousand barrels of Libyan crude to flow soon to the international market. Research company JBC Energy said in a report that Libyan crude exports could increase by 200,000 barrels a day in the next few days and a further 550,000 barrels a day in early May.

The weak performance of U.S. equity market also weighed on crude prices. U.S. stocks lost ground Monday as investors grew cautious ahead of the new round of earnings season and continued pulling money out of tech shares.

Light, sweet crude for May delivery moved down 70 cents to settle at 100.44 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery lost 90 cents to close at 105.82 dollars a barrel.