Oil prices drop as OPEC crude production increases
Oil prices have fallen due to evidence of growing OPEC crude production reducing earlier gains made by moderate US production.
Brent crude futures fell down 13 cents to touch at $48.64 a barrel, while US crude futures dropped 4 cents to $46, reported Reuters.
For the first time since January, drilling activity dropped in the US. The drop was by two rigs and the government data indicated that crude production dropped in in April, which is the first in this year.
PVM Oil Associates strategist Tamas Varga was quoted by the news agency as saying: "Sentiment has turned and I think we should be going up (in price). I don't think it's going to last, but the momentum at the moment is with the bulls."
US Energy Information Administration figures indicate that production dropped by 24,000bpd on a monthly basis.
The output has been rising from countries such as Nigeria, Libya, Brazil and the North Sea.
Markets continue to be oversupplied as production from the Organization of the Petroleum Exporting Countries hit a high for 2017.
Commerzbank analysts was quoted by Reuters as saying: "At current output levels, OPEC will not succeed in eliminating the inventory overhang completely by year's end."