Energy

Crude rally peters out as OPEC production, dollar gain

Reuters with CNBC.com
WATCH LIVE

Brent and U.S. crude oil futures fell in choppy trading on Monday, weighed on by a stronger dollar and recent data showing rising OPEC oil production.

Getty Images

Brent crude gave back early gains, falling 40 cents to near $109. U.S. oil fell 24 cents to settle at $102.47 a barrel, after ending the week 1.6 percent lower.

Libya's oil future
VIDEO2:1502:15
Libya's oil future


Iraq's oil exports rose by 8 percent in May, and a floating terminal was inaugurated that will expand shipping capacity from its southern ports by 800,000 barrels per day (bpd), the oil ministry said on Sunday.

OPEC's oil output rose to a three-month high in May, a Reuters survey found on Friday, as increased supplies from Angola and a further gain in exports from southern Iraq outweighed worsening unrest in Libya.

The euro fell against the dollar on Monday as subdued inflation readings in Germany and slower than expected manufacturing growth in the euro zone put pressure on the European Central Bank to ease monetary policy this week.

A stronger dollar tends to put pressure on commodities including oil, which are priced in the U.S. currency, as it makes them more expensive for non-U.S. importers.

For more information on commodities, please click here.