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.

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.

"There is consensus among Gulf OPEC countries to keep the production ceiling unchanged."

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.

This 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.