What To Know About Oil Today - SPDR Select Sector Fund - Energy Select Sector (ARCA:XLE), United States Oil Fund (ARCA:USO)

The price of oil was under pressure Monday but hovered near the $50 per barrel mark after Libya's largest oil field came back online after a week-long disruption. Oil investors have been debated recently what impact the oilfield would have on the global market but that conversation has now come to an end.

According to a Reuters report, Libya's Shahara oil field, produced around 120,000 barrels of oil on its first day back online and could be on track to match the 220,000 barrels per day production level it saw prior to a shutdown on March 27.

Expect $40 Oil

OPEC's Agreement

OPECstruck an agreement among members and non-members to limit their collective output to support oil prices. But the agreement is scheduled to end in June, and it is unclear at this point if it will be renewed. Don't Expect Oil To Trade North Of $60 In 2017 $30 Oil? It's Possible

John Kilduff, an energy specialist with Again Capital, was a guest on CNBC's "Squawk Box" segment on Monday to explain why he thinks oil could dip to the $40 per barrel level.

Kilduff explained that production from U.S. shale companies could rise by 100,000 barrels per day this month, which poses a threat to OPEC's dominance. Specifically, the increased output from American companies will be noticed by Saudi Arabia who does not want to lose any market share.

Miswin Mahesh, an oil analyst at Energy Aspects, argued during CNBC's "Street Signs" segment that investors should expect the agreement to be rolled-over to the bottom half of 2017.

Mahesh noted that countries involved in the supply drawback have been for the most part fulfilling their pledge despite initial skepticism, so there is little reason to think it won't continue. Even Saudi Arabia cut back its output more than it initially pledged to, which supported higher oil prices.