Prices slump more than 2 percent amidst reports on oversupply from US and a record 2017 exports from OPEC produces casting a shadow on their ability to commit to the cuts agreed upon in May.
Global benchmark Brent futures were down $1.07, or 2.2 percent, at $47.04 a barrel at 0929 GMT, after falling to as low as $46.75, its weakest level in more than a week.
U.S. West Texas Intermediate (WTI) crude futures traded at $44.40 a barrel, down $1.12 or 2.5 percent. Their session low of $44.20 was also the lowest in over a week.
Reports that production is currently on the rise in US and OPEC eclipsed the positive sentiment resulting from the decline in crude and gasoline inventories in the United States. Earlier, due to an increase in demand and declining inventories in US led to a price bump in the oil market. But the recent production numbers have declined the price further.
Oil prices continue to decline for the last few years, as the markets have suffered from the rise in production from US and decline in the demand across the major importers of the world.