Oil prices have dropped as a result of factors such as rising production from the Organization of the Petroleum Exporting Countries (OPEC), an increase in US drilling, and weak Asian economic data.  

Brent crude futures were down 7 cents and traded at $43.46 per barrel, while US West Texas intermediate (WTI) futures fell 2 cents and traded at trading at 41.58 per barrel, Reuters reported.

Oil prices witnessed a fall primarily due to overproduction of crude and a wave of refined products.

"Last week's US crude build is a rude awakening that rebalancing of oil markets is probably further away than thought."

Singapore Exchange (SGX) told the news agency: "Last week's crude build in the US and the return of production in both Canada and Nigeria was a rude awakening that rebalancing (of oil markets) is probably further away than the market thought."

A survey by the news agency found that OPEC oil production during last month increased and reached at 33.41 million barrels per day (bpd) from a revised 33.31 million bpd in June this year.

Libya said that it welcomed the reopening of blockaded oil ports following an agreement between the UN-backed government and an armed force and added saying that it would resume disrupted exports soon.

Baker Hughes released a report that highlighted addition of three oil rigs to a total of 374 by drillers in the US for a fifth consecutive week.

Manufacturing activity in China fell last month, with the official Purchasing Managers' Index (PMI) standing at 49.9 compared with 50 in June.