Oil prices have continued to fall after a period of brief gains as the global market remains oversupplied.
Brent crude futures dropped by 15 cents at $44.67 a barrel, while US crude futures were down by 14 cents to $42.39, reported Reuters.
Last January, the Organization of Petroleum Exporting Countries (OPEC) with other key producers agreed to cut output by 1.8 million barrels per day for six months. The deal has been extended to March next year.
OPEC’s initiative to revive oil prices has been hindered by increasing production in Nigeria and Libya, which have been exempted from the deal, along with surging output in the US.
Reuters reported that the market was not helped by the announcement by Iran's Oil Minister stating that OPEC is considering deepening production cuts.
The US Energy Information Administration reported that crude inventories in the country fell by 2.5 million barrels in the week ending 16 June, exceeding analyst expectations of a fall of 2.1 million barrels.
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It also reported that gasoline stocks fell by 578,000 barrels against the analyst expectations for a seasonally unusual 443,000 gain.