Oil prices have declined following improved prospects for US production and an excess supply of crude and refined fuel products.

International benchmark Brent crude futures LCOc1 edged down 63 cents at $44.35 per barrel, while the US West Texas Intermediate (WTI) crude oil futures CLc1 slipped 64 cents and traded at $42.13 per barrel, Reuters reported.

Traders said that a proposed meeting to be held by oil producers in Algeria from 26 to 28 September this year may not result in market tightening.

Organisation of the Petroleum Exporting Countries (OPEC) member Venezuela is trying to encourage support for the meeting in order to decide measures that would increase prices.

"Renewed attempts at verbal intervention by OPEC will help bolster oil market sentiment."

During a meeting held in April this year, OPEC members did not agree on any measures to cut production.

BMI Research oil analysts told the news agency: "Renewed attempts at verbal intervention by OPEC will help bolster oil market sentiment, although the group will struggle to rebuild its role as a backstop to Brent.”

The US Energy information administration forecast a fall in US crude oil production this year against its projection a month ago, due to a rise in drilling activity.

The agency currently expects a decline in US oil production by 700,000 barrels per day (bpd) this year to 8.73 million bpd.

OPEC president Dr Mohammed Bin Saleh Al-Sada said that since February this year, oil prices experienced a steady improvement following a decline in crude oil production, supply outages and a fall in oil inventories.

Al-Sada further added that the decline observed in oil prices and the current market volatility is only temporary.