* Libya's oil output rises as NOC lifts force majeure
* Brent, WTI may retrace to $52.79, $49.62 respectively
* Iran's crude oil exports hit 3.05 mln bpd
* Market watching for signs of supply tightening (Recasts on lower prices, adds technicals)
By Jane Chung
SEOUL, April 4 (Reuters) - Oil prices fell on Tuesday as a rebound in Libyan oil production combined with an increase in U.S. drilling to signal the potential for increased crude supply.
International Brent LCOc1 crude futures were trading down 22 cents, or 0.41 percent at $52.9 a barrel as of 0643 GMT from the previous session.
U.S. benchmark West Texas Intermediate crude oil prices CLc1 were down 23 cents, or 0.46 percent, to $50.01 a barrel.
U.S. oil may drop to $49.62 per barrel as it failed to break a resistance at $50.95, said Wang Tao, a Reuters market analyst for commodities and energy technicals. Brent oil may also retrace its steps back to $52.79 per barrel. oil prices fell as increased drilling in the United States and a rebound in Libyan output weighed on investor sentiment," said ANZ bank in a note.
Libya's crude output increased after state-owned National Oil Corp (NOC) lifted a force majeure on loadings of Sharara oil from the Zawiya terminal in the west of the country, sources familiar with the matter told Reuters. U.S. drillers last week added rigs for an 11th week in a row, data from energy services company Baker Hughes showed on Friday, extending a 10-month drilling recovery. OPEC producers are also raising output. Iran's exports of crude oil and gas condensate hit a record 3.05 million barrels per day (bpd) by March 20, the end of the Iranian month of Esfand, according to a report by the Islamic Republic News Agency (IRNA). oil market continues to look for signs of a tightening market as concerns linger that compliance with producer-led output cuts remains insufficient to erode a supply glut and the United States raises oil output.
The Organization of the Petroleum Exporting Countries (OPEC), and non-OPEC members including Russia, agreed late last year to cut output by almost 1.8 million barrels per day (bpd) in the first half of 2017. The market's focus has now shifted to whether the major oil producers will extend the cuts.