USA oil production has been rising quickly this year, feeding the global glut.
Oil prices fell further Wednesday, with the global benchmark for crude sliding below $45 a barrel.
Brent for August settlement rose 5 cents to $46.97 a barrel on the London-based ICE Futures Europe exchange.
According to Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London,"presently in libya there found a support in light of recent supply side development, considering further restoringg of production in Libya, further increase in the USA rig count and reports of floating storage building up again".
USA crude oil and gasoline stockpiles fell last week, while distillate inventories rose, the Energy Information Administration said on Wednesday. While lower oil prices are good news for drivers, it bodes ill for the industry at large as stocks tumble and investor sentiment becomes pessimistic.
The price of oil has hit another record low, despite the decision just months ago by OPEC members to cut supply.
Libya is now producing 902,000 barrels a day, an official at the state National Oil Corp. said Tuesday.
Opec supplies actually jumped in May as output recovered in Libya and also Nigeria, two countries exempt from the production cut agreement.
Non-OPEC output, particularly in the USA, dominated the rise, it said.
It stated that OPEC and 11 rival exporters, including Russian Federation, have agreed to extend a deal to limit supply by 1.8 million bbl/d to March 2018, in order to cut global inventory levels.
West Texas Intermediate for July delivery, which expires Tuesday, was down $1.14 to $43.06 a barrel on the New York Mercantile Exchange at 1:37 p.m.in London, the lowest since November 14.
LONDON (AP) Oil prices are falling further to a new seven-month low, with the global benchmark for crude sliding below $46 a barrel.
OPEC compliance with the output curbs in May was 108 percent, while non-OPEC compliance was 100 percent, the source said.
The concerns over the possibility of failing to reach the targeted level of cuts are due to the growing volume of crude output by Libya and Nigeria.
For India, which imports close to 80 percent of its annual consumption of 212.7 million (2016) tonnes as per BP statistics, a fall in prices of oil will facilitate huge gains.