Crude prices have fallen more than 10 percent since late May, pulled down by heavy global oversupply that has persisted despite a move led by the Organization of the Petroleum Exporting Countries to curb production.
Opec production rose more than 336 000 barrels a day in May from a month earlier to 32.14 million barrels a day, according to a monthly report from the group on Tuesday. In May, OPEC and 10 other crude-oil producers agreed to extend the deal to cut output by 1.8 million barrels a month until next March.
Last month, Iran exported about 1.1 million bpd to Europe including Turkey, nearly reaching pre-sanction levels and only slightly below the 1.2 million bpd supplied to Asia, the source said.
The move is meant to drain the market of excess supply.
"Oil tumbled to its lowest in five weeks as an unexpected increase in USA crude and gasoline stockpiles stoked fears that the global supply glut will remain unabated".
Brent, against which half of the world's oil is measured, plunged by $1.79 to $46.93 per barrel as of 7.50pm Nigerian time, while the United States benchmark, West Texas Intermediate, dropped to $44.66 per barrel, the lowest level since November 14, 2016.
Light, sweet crude for July delivery slid US$1.73, or 3.7 percent, to US$44.73 a barrel on the New York Mercantile Exchange, snapping a three-session winning streak and closing at the lowest level since November 14.
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Summer boosts gasoline demand from US drivers, yet gasoline inventories rose 2.1 million barrels last week, 9 per cent over the five-year average for this time of year, according to the US Energy Information Administration (EIA).
"Any build in USA commercial stocks gives us an indication of the uphill battle OPEC is facing", said Tamas Varga, an analyst at PVM Oil Associates Ltd.in London.
Libya and Nigeria are exempt from the OPEC-led production deal to ensure oil revenue flows to national security efforts.
But OPEC has struggled to actually cut production.
The agency continued to forecast an implied shortfall in supply relative to demand for the second quarter of this year.
Molchanov said he expects prices to recover, but it is likely to take six to 12 months for that to happen. This upward adjustment was mainly due to the downward revision in non-OPEC supply as world oil demand remained unchanged.
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