Oil prices have eased after a rise in US crude stocks and a lack of any action from oil producers to curb supply reduced some of the bullish sentiment in the market earlier this week.
Brent futures fell 27 cents to $36.66 a barrel, while US crude futures dropped 2 cents to $34.64, Reuters reported.
Natixis commodities strategist Abhishek Deshpande told the news agency: "Prices must fall once again to reach bottom in a way that really shuts down production. I don’t think a freeze is the solution."
Last week, crude inventories in the US increased 10.4 million barrels to 517.98 million barrels.
Around one million to two million barrels of excess crude is being produced worldwide every day, which has lead to a 70% fall in oil prices since mid-2014.
Major oil producers led by Russia and Saudi Arabia signed an agreement in February 2016 to freeze production at January levels. This may not help reduce the supply glut.
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The International Energy Agency estimates that crude stocks built-up in the past two years will not be cleared until 2021.
Image: Crude inventories in the US increased 10.4 million barrels to 517.98 million barrels last week. Photo: courtesy of Victor Habbick/FreeDigitalPhotos.net.