Oil prices have fallen amid a consistent increase in US crude output that undermined the impact of the reports that the ongoing OPEC-led output cuts may be extended.
Brent crude futures were trading at $49.33 per barrel down from a high of $49.60, while US West Texas Intermediate (WTI) crude oil futures fell to $46.40, reported Reuters.
Traders stated that oil prices fell due to continued pressure from the rising production in the US along with a slowdown in China's economy.
Since mid-2016, US output has grown by 10% to reach 9.3 million bpd.
Goldman Sachs told the news agency that the rise is production is primarily driven by shale oil drillers who ramped-up their output rapidly than the conventional producers.
Bank of America division Merrill Lynch attributed the fall in oil prices to a slowdown in demand.
China also reported a fall in its growth due to sluggish export and import.
Earlier, Saudi Arabia reported that it would take all possible initiatives to rebalance the oil market and revive the prices affected by global oversupply.
The ongoing production curb deal may be extended to the last half of the year and possibly to the next year.
OPEC along with other key producers have agreed to reduce oil production by 1.8 million barrels a day from the usual output.
The deal is scheduled to end next month.