Oil prices have slipped due to persistent high supplies from Organization of the Petroleum Exporting Countries (OPEC) producers.
Brent crude futures fell by 33¢ to $52.03 per barrel, while the US West Texas Intermediate (WTI) crude futures were down by 31¢ to settle at $49.28 a barrel, reported Reuters.
The oil prices received support from strong demand from the US, but high supplies from the OPEC producers largely offset these gains.
Gasoline demand soared to 9.84 million barrels per day (bpd) in the US last week, according to the report of Energy Information Administration (EIA).
The report also stated that commercial crude stocks in the week to 28 July declined by 1.5 million barrels to 481.9 million barrels.
The current inventory levels are lower than the corresponding period of last year, suggesting a tightening of the US market.
Prices reportedly fell as OPEC supply continued to remain high, despite the countries’ ongoing pledge to reduce output by 1.8 million barrels per day by March next year in a bid to rebalance the market.
Thomson Reuters Eikon trading data showed that crude oil shipments from OPEC and Russia were nearly around 32 million barrels per day last month, the highest level reached this year so far.
The figure excludes pipeline supplies, and represents an increase from 30.5 million barrels per day in January.
BMI Research and the US investment bank Goldman Sachs previously said that the oil industry has adjusted itself to low oil prices, hovering around $50 per barrel.