Oil prices have fallen after the International Energy Agency (IEA) warned that oversupply concerns worldwide threatens prices.
Global benchmark Brent oil dropped 76 cents at $47.71 a barrel, while the US crude fell 60 cents and traded at $46.20 a barrel, Reuters reported.
In its latest report, the IEA said that crude stocks kept rising last month and floating storage has continued to build, reaching its highest level since 2009.
Data revealed by the American Petroleum Institute (API) highlighted an increase in US crude and refined products last week by 2.2 million barrels, which also resulted in a fall in oil prices.
IEA’s report stated that oil supplies worldwide increased by 600,000bpd last month after outages curbed Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC supplies in May.
Crude oil prices eased from an early June peak above $52 a barrel, traded within a $45-$50 range.
Saudi Arabia increased production to 10.45 million bpd and output from Nigeria also partially recovered.
Global refinery throughput in May this year fell by almost one million bpd from April, to 1.5 million bpd year-on-year, due to heavy outages in various regions.
IEA said in a statement: “This lowered the second quarter estimate for global refinery intake to 78.54 million bpd, the first year-on-year drop in three years.”