"According to the head of Libya's national oil company, the country could well achieve output of 700,000 barrels a day by the end of the year," said a report from Commerzbank in Frankfurt.
Libya, which has Africa's largest proven reserves of conventional crude, was producing 1.6 million barrels of crude a day before the pro-democracy revolution against Moammar Gadhafi.
Expectations that U.S. stockpiles of crude and refined products grew last week also pushed down prices.
Data for the week ending Sept. 30 are expected to show builds of 2.5 million barrels in crude oil stocks and of 1.3 million barrels in gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.
The American Petroleum Institute will release its report on oil stocks later Tuesday, while the report from the Energy Department's Energy Information Administration — the market benchmark — will be out on Wednesday.
In other Nymex trading Tuesday, heating oil fell 3.96 cents to $2.7155 per gallon. Gasoline futures fell 2.85 cents to $2.4825 a gallon. Natural gas was down 1.9 cents at $3.598 per 1,000 cubic feet.
Pamela Sampson in Bangkok contributed to this report.
Copyright 2011 The Associated Press.