Crude oil prices have dropped due to the combination of a strong US dollar and high inventories of physical oil.
Brent crude oil futures LCOc1 were down 37 cents and traded at $48 per barrel, while the US West Texas Intermediate (WTI) crude futures CLc1 slipped 21 cents at $46.14, Reuters reported.
Oil prices witnessed a fall as strong dollar made it more expensive for other currency holders to buy dollar-denominated commodities.
From the beginning of this month, oil prices increased by more than 20% due to expectations that major shale producers were in the process of reviving discussions regarding a possible output freeze.
However, analysts have since stated that the focus has now shifted to physical market fundamentals.
Saudi Arabian Energy Minister Khalid al-Falih said that the country has not set any specific target figure for its oil output, which depends on the needs of its customers.
Data revealed by the American Petroleum Institute highlighted an increase in US crude stocks by 942,000 barrels to 525.2 million in the week ending 26 August.
Energy Information Administration is due to release official oil inventories data in the US.