The price of Brent crude oil dropped below $56 a barrel on Wednesday after an increase in US crude stocks.
Reuters reported that Brent crude futures declined 90 cents to $55.53 and US crude traded at $49.52.
The American Petroleum Institute said crude stocks increased by 1.6 million barrels last week.
The US Government’s Energy Information Administration (EIA), which is due to release its latest report later today, said stocks are already at a record.
The International Energy Agency said the US will remain the world’s top source of oil supply growth up to 2020, even after the recent decline in prices.
Fereidun Fesharaki at Facts Global Energy said in a note to traders: "The supply growth in 2015 is likely to continue unabated, albeit at a somewhat lower rate.
"This all means a weak market in 2015 and even lower oil prices. Demand rebound will not save the oil market."
Oil prices have gained by more than 20% in the past four weeks after dropping by over 50% since June 2014.
Kuwait Oil Minister Ali al-Omair said that crude prices may increase to $60 a barrel by the end of 2015.
According to the EIA, US oil production is expected to be 9.3 million barrels per day in 2015, when compared with the 9.31 million bpd forecast in its last month’s short-term energy outlook.