Oil prices have fallen by more than 2% due to surging dollar value, which gained around 0.4% against other currencies.
Benchmark Brent crude oil for July dropped by $1.75 to a low of $63.74 to around $63.90, while US crude was 2.25% at $59.86 a barrel, Reuters reported.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The supply concerns on oil prices come ahead of the Organization of the Petroleum Exporting Countries (OPEC) meeting, set to take place in Vienna on Friday, where core gulf members plan to maintain the group’s output.
OPEC refused to reduce output in November 2014 and instead decided to defend market share.
OPEC delegate told the news agency: "There is consensus among Gulf OPEC countries, and others, to keep the (production) ceiling unchanged."
In 2014, Brent collapsed to almost $45 a barrel in January compared to above $115 in June 2014.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThis disappointed oil producers in countries outside OPEC, including shale drillers in the US.
Based on comments made by OPEC ministers, investors assume that the big oil producers in Middle East are expected to carry on pumping same amount of oil.
OPEC members are currently pumping around two million barrels per day (bpd), which is more than the demand expected at the moment helping fill oil inventories globally.
