Oil prices have dropped by more than 1% due to growing exports from OPEC and a strong dollar.
Benchmark Brent crude futures dropped 57 cents to touch at $49.04 a barrel, while US WTI crude futures fell 63 cents to reach $46.44, reported Reuters.
Commerzbank senior commodity analyst Carsten Fritsch was quoted by the news agency as saying: "The air is getting thin for oil prices.
“The price increase just ran out of steam, which is not very surprising, given the news-flow of rising OPEC supplies."
According to another analyst, with the strengthening of the value of dollar, there is less incentive to invest in commodities such as crude oil.
According to a report by Thomson Reuters Oil Research, OPEC exports increased for the second month in a row in June to touch at 25.92 million bpd, an increase of 1.9 million bpd compared with the same month last year.
OPEC’s efforts to curtail price decline have been undermined by growing output from Libya and Nigeria, which have been exempted from the cuts.
Libya’s crude production is around one million bpd, which is a four-year high.