Oil prices slipped to around $57 today due to increasing demand concerns caused by weak data from China.
Prices were also affected by a report from the American Petroleum Institute, which revealed that US crude stocks increased by more than six million barrels last week.
Reuters reported that Brent crude oil was 53 cents lower at $57.38 a barrel, while US crude was down 88 cents at $52.17 a barrel.
Morgan Stanley analysts were quoted by the news agency as saying: "Longer-dated prices are moving towards a range that could allow producers to hedge, which would prevent any material slowdown in US supply."
Data from Baker Hughes has revealed that energy firms hit by lower crude prices have cut rig counts with the number of US rigs drilling for oil down by 61 in the week to 9 January.
The price of Brent crude increased 19% in the previous four sessions following the declining number of US oil drilling rigs.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
PIRA Energy expects worldwide oil demand to increase by 1.5 million barrels per day this year.
The company noted that oversupply will beat demand in the next six months.