08:44 AM EDT, 05/24/2024 (MT Newswires) -- Oil prices fell to a three-month low early on Friday, dropping for a fifth-straight day as demand remains light at the start of the U.S. driving season.

West Texas Intermediate crude for July delivery was last seen down US$0.29 to US$76.58 per barrel, the lowest since Feb.23, while July Brent crude, the global benchmark, was down US$0.29 to US$81.07.

Crude oil is down 7.2% over the past month on moderate demand, adequate supply and fading hopes for the stimulus of an interest-rate cut after minutes from the last meeting of the Federal Reserve's policy committee showed members were not convinced inflation is moving towards the central bank's 2% target.

"The Fed minutes revealed serious reservations amongst policy makers about the effectiveness of the current round of monetary tightening with U.S. manufacturers reporting an increase in prices for inputs, which could be the harbinger of elevated consumer prices in months to come," PVM Oil Associates noted. "Weekly jobless claims also declined last week. Add to that the noticeable rise in negotiated wages in 1Q in the euro zone and accurately predicting where the long-awaited rate cuts will turn into a dubious undertaking."

The market's focus is turning to the June 1 OPEC+ ministerial meeting, which is widely expected to roll production cuts of 2.2-milion barrels per day into the third quarter, continuing to limit supply during the high-demand U.S. driving season, which begins this Memorial Day weekend.

"OPEC+ meets next Saturday and a rollover of current production cuts remains the most likely outcome," Saxo Bank noted.