Oil prices dropped to around $64 a barrel on Monday as higher Iranian output countered signs of a strong economic rebound in the United States and hopes for a wider demand recovery in 2021.
Prices were also affected by rising supply from the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, which agreed on Thursday to monthly production hikes from May to July.
Brent crude for June fell 96 cents to $63.90 a barrel while U.S. West Texas Intermediate crude for May dropped 62 cents to $60.83.
Oil has recovered from historic lows last year due to record OPEC+ cuts, most of which will still remain after July, and some oil demand recovery that is expected to gather pace in the second half of the year.
While a slow vaccine rollout and return to lockdown in parts of Europe have weighed on the rebound, figures on Friday showed the U.S. economy created the most jobs in seven months in March, with all industries adding jobs.
In another development that could eventually lead to more supply, investors are focused on indirect talks between Iran and the United States as part of negotiations to revive the 2015 nuclear deal between Tehran and global powers.