Oil falls towards $61; OPEC cut unlikely

Oil prices fell towards $61 a barrel on Monday ahead of OPEC's meeting in Vienna, where the group was widely expected to agree not to cut oil output further.

News that Nigerian militants breached an oil pipeline in the Niger Delta failed to push prices higher.

U.S. energy firm Chevron said on Monday the attack on its pipeline shut down 100,000 barrels per day (bpd) of production.

U.S. crude futures for July delivery fell 64 cents to $61.03 a barrel by 1402 GMT.

London Brent crude fell 74 cents to $60.04.

U.S. markets are closed on Monday for the Memorial Day holiday. NYMEX floor trading resumes on Tuesday.

Oil prices rallied around 9.5 percent last week, boosted by a spate of U.S. refinery problems and unrest in major oil exporter Nigeria, and are nearly double the lows they hit in December on speculation the economic recession is easing and demand for energy will revive.

Ministers from the Organization of the Petroleum Exporting Countries (OPEC) were expected to make no change to oil supply when they meet in Vienna on Thursday as higher prices helped mitigate their concerns about overflowing fuel inventories and dwindling demand.

Saudi Arabian Oil Minister Ali al-Naimi said OPEC would "probably stay the course" as he forecast a pick-up in demand and prices eventually rising towards $75 a barrel.

Iran's OPEC governor, Mohammed Ali Khatibi, said the possibility of the group agreeing to cut oil output again at its May 28 meeting was remote, an Iranian newspaper reported on Monday.

In recent days, Khatibi has made clear his view that production should be reduced again due to rising oil stocks.