Oil prices have dropped nearly 3% after China increased exports of refined products and shale producers in the US added rigs.

Brent crude futures were down by $1.49 and traded at $49.39 per barrel, while the US West Texas Intermediate (WTI) crude slipped by $1.27 to $47.25 a barrel, Reuters reported.

China augmented its exports of diesel and gasoline last month by 181.8% and 145.2% respectively, increasing pressure on refined product margins.

"Oil prices will likely experience another short-term dip in the coming weeks."

Oil prices also decreased as prospects emerged for increased exports from Iraq and Nigeria.

Barclays told the news agency: "Oil prices will likely experience another short-term dip in the coming weeks."

Following rebound of crude towards the key $50 mark, shale drillers in the US added ten oil rigs in the week ending 19 August.

SEB chief commodity analyst Bjarne Schieldrop said that the addition of 32 rigs this month alone will add close to 200,000bpd of extra supply through next year.

Prices dropped amid Iraq's plans to increase exports of crude by 150,000bpd this week from three oil fields in Kirkuk following an outage since March due to a payment dispute with Kurdistan Regional Government.

A Nigerian militant group claiming a series of attacks on oil facilities in the Niger Delta has announced it is prepared for a ceasefire and discussions with the government.