Oil prices have dropped amid rising pressure in the global crude market caused by increasing US output.
The investors are now awaiting the weekly official inventory data from the US Energy Information Administration.
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West Texas Intermediate crude futures fell by 15 cents to $53.86 a barrel, while Brent crude slipped by 13 cents to trade at $56.38 per barrel, reported Reuters.
US crude stocks have increased for seven weeks consecutively.
Analysts predict another improvement in inventory last week, which may further negate the effect of OPEC-output cut to end global oversupply.
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According to American Petroleum Institute, US inventory increased by 2.5 million barrels in the week that ended 24 February.
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By GlobalDataEarlier, oil prices improved as US President Donald Trump provided few details on increasing production in the country in his speech to Congress.
OANDA futures brokerage senior market analyst Jeffrey Halley was quoted by the news agency as saying: “If Trump had announced de-regulations of some of the environment protections to make it easier to pump more oil, that might have put pressure on WTI.
“Now all the attention is around to EIA's crude inventories data tonight.”
A Reuters survey found that OPEC countries have increased their compliance in the second month of the output-cut deal.
OPEC has decided to produce 1.8 million barrels less per day to end the global oil oversupply.
